Buy AMD Stock, BlackBerry Stock, Sell Tesla Stock - Today's Technical Trading Ideas

Advanced Micro Devices Inc. (NASDAQ:AMD) Stock Looks Set To Resume Its Uptrend.

Shares of Sunnyvale, California-based Advanced Micro Devices Inc (NASDAQ:AMD) look set for an uptick, resuming their uptrend. The stock initially surged after the company reported a strong set of earnings numbers for the second quarter this year. However, the broader sell off in tech stocks has hurt AMD stock as well, and interestingly, the stock is now even lower than its pre-earnings level. AMD stock went into earnings trading at about $14.11 a share, and surged to $14.76 post earnings, only to fall subsequently to $13.61 a piece, where it closed the trading session yesterday.

AMD stock technical chart - Advanced Micro Devices Inc

This could be an opportunity for investors looking for an entry point. While AMD stock was close to entering overbought territory following the big post earnings rally, the sizeable correction in the last few days has ensured that the stock is available at much lower levels. Further, some popular technical indicators suggest that the stock is on the verge of an uptick. AMD stock has found support from its 20 day Simple Moving Average (SMA), and while the stock price looks like it has breached the SMA, a look at the charts will show you that this has been a recurring pattern for AMD. The stock has made higher highs and higher lows and found support at its 20 day SMA. And given its strong second quarter results, this pattern is likely to repeat.

Another positive is that AMD's 50 day SMA is on the verge of making a golden cross by rising above its 100 day SMA. When a shorter duration SMA breaks out above a longer duration SMA, it is considered to be a bullish signal. AMD stock is far from overbought territory, whether you go by the Bollinger Bands or the Relative Strength Index (RSI). A strong move higher could also trigger a bullish MACD crossover, further reinforcing the bullish sentiment.

BlackBerry Ltd (NASDAQ:BBRY) Stock May Rebound Today.

Shares of BlackBerry Ltd (NASDAQ:BBRY) have corrected sharply since June this year, after a big rally that began in March. Further, the fact that Moving Average Convergence Divergence (MACD) has made a bearish crossover with the signal line suggests that the stock could be headed even lower. However, if you look at some of the other technical indicators, BBRY stock looks set to rebound and resume its uptrend in the near term, backed by multiple positive indications from the charts.

BlackBerry stock technical chart - BBRY stock - NASDAQ

For starters, BlackBerry stock has entered oversold territory. If you look at the Bollinger Bands, BlackBerry's stock price is now touching the lower band, which is a signal of oversold conditions. To confirm this signal, a lot of traders like to turn to the RSI. In this case, the RSI reading is at just above 33, which is a tad higher than the commonly used oversold threshold of 30. So, technically speaking the stock isn't oversold as per the RSI. However, we saw the stock finding support at the 100 day SMA yesterday. The stock hasn't fallen below this SMA since April this year. If the stock manages to stay above this SMA today, you might just see a move higher. If it does, the next level of resistance will come from the 20 day SMA at $9.89, which is about 5% higher than the previous close. With short interest at over 8% of float, and days to cover at over 5, even a small rally may trigger short unwinding, which could push the stock higher.

Tesla Inc (NASDAQ:TSLA) Stock May Be Headed Lower.

Shares of Tesla Inc (NASDAQ:TSLA) have corrected rather sharply since mid-June, followed by a brief rally this month. However, the stock seems to be headed lower again. After facing resistance from the 50 day SMA, Tesla's stock price has moved lower over the last few days and fallen below the 20 day SMA. The next level of support for the stock will come from the 100 day SMA at just over $318. With no specific bullish triggers in sight, there's a good chance the stock could slip to this level. Further, Tesla's MACD also looks poised to make a bearish crossover with the signal line, which is another bearish signal. The stock is far from oversold territory, which allows room for further downside. However, traders who plan to bet against Tesla should note that the company's earnings are due tomorrow. Tesla has a very erratic track record or surprises, with earnings beating and missing estimates by a massive 200% plus on both sides in the last year.

Tesla stock - TSLA - technical chart

If Tesla does issue positive guidance, the stock is likely to soar, fuelled additionally by short interest, which is at over 26% of the company's float, with days to cover at 3. Tesla reports earnings after market hours tomorrow. If you're looking for more such technical trading ideas, check out our daily trading ideas section. If you're also keen to discover great tech stocks with strong fundamentals, which have beaten the NASDAQ by over 152%, check out our top stock picks from the sector.


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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