Apple Inc, Wal-Mart Stores Inc And Valeant Pharmaceuticals Intl Inc - Today's Technical Stock Trading Ideas

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.

Apple-AAPL-technical-chart

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.

WMT-technical-chart

 

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.

VRX-stock-technical-chart

If you're looking for technical trading ideas, check out our daily trading ideas section. We also have picks from the auto sector, and they've done pretty well, beating the S&P 500 by a handy 195%.


Vikram Nagarkar Vikram Nagarkar   on Amigobulls :

Neither Amigobulls, nor any members of its staff hold positions in any of the stocks discussed in this post. The author may not be a certified/registered investment advisor, and the opinions expressed should not be treated as investment advice.

Buying and selling of securities carries the risk of monetary losses.Readers/Viewers are advised to carry out their own due diligence and consult their investment advisors before making any investment decisions.

Neither Amigobulls, nor the author have any business relationship with any of the companies covered in this post.

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