Buy Apple Stock, Sell Snap Stock, Twitter Stock - Today's Technical Trading Ideas

Apple Inc (NASDAQ:AAPL) Stock Looks Set To Resume Its Uptrend.

Apple stock Snap stock Twitter stock - todays technical trading ideas - AAPL - SNAP - TWTR
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Shares of Cupertino, California-based Apple Inc (NASDAQ:AAPL) look all set to resume their uptrend, largely due to yesterday's positive announcements, aided by the positive technical set up. Apple shares started to correct in the second week of June this year, and the phase lasted nearly a month. AAPL stock finally found support at its 100 day Simple Moving Average (SMA) towards the 7th of July and eventually started to move higher. However, concerns around Apple's third quarter results pushed the stock lower for a brief period prior to yesterday's earnings release. Now, Apple stock looks set for a rally that could last a few days at the very least.

To quickly sum up the earnings release, Apple's revenue and profits beat analyst estimates. Apple's revenue for the quarter came in at $45.4 billion, higher than the expected $44.89 billion, while earnings totaled to $1.67 per diluted share, against expectations of $1.57 a share. iPhone sales grew by 2% to touch 41 million units, beating expectations, even as the company managed to reduce channel inventories by 3.3 million, implying that the demand for iPhones was in fact higher than this quarter's sales numbers would suggest. This, in spite of the much anticipated upcoming launch of the iPhone 8, which was expected to hurt demand in the immediately preceding quarter. Apple's cash balance hit a new record of $261.5 billion during the quarter, while the company declared a 63 cents per share dividend, translating to an annualized dividend yield of 1.7%. While the dividend yield isn't the best available among listed companies, it's not bad at all if you've managed to generate close to 30% in capital appreciation as Apple investors have, so far this year.

Apple stock technical chart - AAPL - Apple Inc

On the whole, Apple's third quarter earnings seem to have enthused investors, and the stock is up by 6.3% in pre-market trade. Coming to the technicals, Apple shares have found support at their 50 day and 20 day SMAs. And while the Moving Average Convergence Divergence (MACD) looks set to make a bearish crossover with the signal line, that may change when markets open today. To further aid the bullish sentiment, Apple's 20 day SMA is poised to make a Golden Cross by rising above the 50 day SMA. All put together, a rally is on the cards, and could continue over the next few days.

Snap Inc (NYSE:SNAP) Stock Has Bullish Signals, But You May Want To Ignore Them.

Shares of Snap Inc (NYSE:SNAP) have fallen heavily over the last few days. As a result, Snap stock looks oversold, going by the Relative Strength Index (RSI), which has a current reading of 25, well below the commonly used threshold of 30. Further, the stock price is also close to the lower Bollinger Band, which is also a sign that the stock is close to being oversold. The MACD looks set to make a bullish crossover, which is also a bullish signal.

Snap stock technical chart - Snap Inc

 

However, Snap's stock price could be headed lower, thanks to the lockup expiry of a massive number of shares. Another lockup is due to expire on August 14th, which will make even more shares available for trading. Further, with Snap's second quarter earnings due to be released next week, prior the lockup expiry, buying into the stock right now could be very risky. Given the dynamics at play, traders who absolutely must take a position may be better off selling the stock. However, avoiding the stock altogether may be the best approach for conservative investors.

Twitter Inc (NYSE:TWTR) Stock Has Entered Oversold Territory.

Shares of San Francisco, California-based Twitter Inc (NYSE:TWTR) have lost over 17% since the company reported its second quarter earnings on the 27th of July, less than a week ago. As you'd expect, TWTR stock has entered oversold territory. The RSI currently has a reading of 29.7, just under the threshold of 30. Further, this signal is confirmed by the Bollinger Bands, with Twitter's stock price touching the lower band. When the RSI and Bollinger Bands concur, the signal is considered to be a strong one. So, Twitter is indeed oversold if you go by the charts alone.Twitter stock technical chart - TWTR - Twitter Inc

 

Further, the news that Twitter is testing a new subscription product, which could potentially boost revenue growth, could lift the stock in the coming days. However, such a service comes with its own set of risks, and could potentially turn away some of Twitter's loyal users. As things stand, Twitter's fundamentals will have to improve before it becomes attractive from a long term perspective. However, there could be a brief buying opportunity in the near term. Looking for more such technical trading ideas? Check out our daily trading ideas section. If you're also looking for fundamentally solid stocks, you should also take a look at our top stock picks from the tech 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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