QUALCOMM, Inc. (NASDAQ: QCOM) stock breaks above its crucial 50-day SMA.
Shares of smartphone chipmaker Qualcomm, Inc. (NASDAQ:QCOM) could be headed much higher in the days ahead. In a bullish move, QCOM stock closed above its 50 day Simple Moving Average (SMA) in the last trading session. The last traded share price was $55.95. This bullish crossover was preceded by the Moving Average Convergence Divergence (MACD) value turning positive two days back, which is generally viewed as a bullish sign. The 20-day SMA has also acted as a good support for the stock since it broke above the trend line in the beginning of this month.
The share price of the San Diego, California-based company has largely moved in the range of $52-$59 since the crash in January. In a recent post, "Mad Money " host Jim Cramer hinted the stock could hit the top end of that range in the near term. He pointed out that the Qualcomm share price "has flattened out lately, to the point where it's running just above the top of an ascending triangle pattern." This was another recent bullish technical signal and the breakout above the 50-day SMA further boosts this bullish thesis.
The only red flag seems to be in the form of Relative Strength Index (RSI) indicator. The current RSI measure of QCOM stock is 75.39 which stands above the overbought threshold measure of 70. Though RSI flashes an overbought signal, the Bollinger Bands indicator still does not indicate an overbought condition. The combination of these two indicators is often considered as a strong signal. The share price is close to the upper Bollinger Band but has not yet breached it to signal an overbought condition. QCOM stock is presently considered as a risky bet but with the bullish technical signals getting much stronger, the stock could soon test the $59 levels.
Gilead Sciences, Inc.(NASDAQ: GILD) stock is on the verge of entering oversold territory.
Shares of Foster City, California-based Gilead Sciences (NASDAQ:GILD) have been in a downward spiral since the company reported its Q1 earnings on May 2nd. The biotech company had missed both earnings and revenue estimates for the first quarter. GILD stock is down more than 4% since the Q1 earnings announcement.
The share price had recently fallen below its critical 20-day and 50-day Simple Moving Averages (SMA) and currently, it trades below its all crucial SMAs. However, the stock could be in for a rebound. The recent downtrend has brought the stock very close to oversold territory. The current Relative Strength Index (RSI) measure of 31.46 is marginally above the oversold threshold of 30. Adding to that, the present share price is few cents away from the lower Bollinger Band. A breach of the lower Bollinger Band would also indicate that Gilead stock is oversold. If the current downward trend persists, the stock could be in oversold condition based on both RSI and Bollinger Bands by the next trading session. A bounce could be on the cards once GILD stock enters the oversold territory.
Ford Motor Company (NYSE:F) stock is oversold.
Detroit-based automobile major Ford Motor Company (NYSE:F) is presently trading at very low valuations. The company has one of the lowest P/E ratios among the S & P 500 companies. The market did not react positively to Ford's Q1 earnings report. An earnings beat failed to move the stock up. In fact, the stock is down nearly 5% since Q1 earnings. With the stock trading at such low valuations, investors can benefit by buying the stock at these cheap valuations and at the right moment.
F stock is now oversold as per the Relative Strength Index (RSI) indicator which presently stands at 25.37, comfortably below the oversold threshold of 30. Ford share price is very close to the lower Bollinger Band, just 18 cents away. The stock is already down 6 cents in pre-market trade, at the time of writing this post. So, the probability of breaching the lower Bollinger Band in today's trade is very high. The combination of the above two indicators giving an oversold signal could mean a near-term rebound. Investors can benefit by buying it very cheap and making gains on the rebound. The stock presently trades near its 1987 price. Investors could make decent gains by buying the stock at these cheap valuations. If you're a technical analyst or trader, check out our latest section dedicated to daily trading ideas based on technicals.
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