Apple Inc (NASDAQ:AAPL) stock has entered oversold territory.
Following a relatively rough phase over the last fortnight, shares of Apple Inc (NASDAQ:AAPL) have corrected by more than 9%. And after Friday's near 1.5% correction, the stock has entered oversold territory. A look at the technical chart shows you that the stock price is now touching the lower Bollinger Band, which is a sign that the stock has entered oversold territory. Further, the Relative Strength Index also suggests that the stock could be close to a near term bottom. The RSI currently has a reading of 31, which is very close to the oversold threshold of 30. Apple is a fundamentally solid company. It's also a part of our top stock picks, which have beaten the NASDAQ by over 130%. We think that the current pullback could be used by investors to accumulate shares of the company. As we had highlighted in previous posts on Apple, we expected the company to offer good potential returns even from its 52 week highs. So, the correction only makes the stock look more attractive for long term investors.
Wal-Mart Stores Inc (NYSE:WMT) stock makes bearish crossovers.
Shares of Walmart Stores Inc (NYSE:WMT) made bearish crossovers with more than one Simple Moving Average (SMA) on Friday. WMT stock cracked by close to 5% after it became official that Amazon.com Inc (NASDAQ:AMZN) is indeed buying Whole Foods Market (NASDAQ:WFM) in a move to take on physical retail chains. Wal-Mart shares made a huge gap down on high volumes, to fall below their 20-day SMA and 50-day SMA. With the price now way below the lower Bollinger Band, the stock looks oversold. However, since the RSI isn't indicating an oversold position yet, the signal isn't very strong. The bearish signs seem to outweigh the bullish signals for now, with the MACD falling well below the zero line. The next support for the stock could come from the 100 day SMA, which is a little over 3.5% away.
Valeant Pharmaceuticals Intl Inc (NYSE:VRX) Stock Facing Resistance.
Shares of Valeant Pharmaceuticals Intl Inc (NYSE:VRX) have been facing strong resistance from their 20-day SMA after falling below it towards the end of May. After a steep rise in mid-May, the stock has moved sideways and declined consistently over the last month or so. The 20-day SMA, which is currently at $12.67, just a cent above Friday's closing price is now acting as a resistance. Meanwhile, the stock's 100-day SMA is the next level of support at $12.24. If VRX stock breaks out above the 20-day SMA today, the stock could continue to move higher. If it doesn't, expect the stock to be range-bound, with a bottom around the 100-day SMA. Fundamentally, VRX isn't a great stock to own. So, we wouldn't recommend that long-term investors bet on it. However, having taken out the resistance from the 100 day SMA, the stock could break out above the 20 day SMA today, making it a technical trading opportunity.