Amazon.com Inc (NASDAQ:AMZN) Stock Faces Resistance.
Shares of Seattle, Washington-based Amazon.com Inc (NASDAQ:AMZN) have corrected quite a bit since the company reported its second quarter earnings late last month. AMZN stock has declined in value by nearly $100 a share, falling below key moving averages, like the 20 day Simple Moving Average (SMA) and the 50 day SMA. Amazon has rarely breached its 50 day SMA in the past year, and when it has, the moving average has served as a support, with the stock rebounding in quick time. The stock has now closed lower than the 50 day SMA for two days in a row, and is facing strong resistance from the moving average. If Amazon stock doesn't manage to climb back above the 50 day SMA today, the stock may continue to trade flat or correct further, given the negative bias seen in the Moving Average Convergence Divergence (MACD).
Amazon missed second quarter earnings estimates, which led to the big correction. And given that the stock is still up by over 31% for the year, don't be surprised if you see it falling further. However, we're bullish on Amazon stock in the long term. Amazon's lending and advertising businesses look set to drive both top and bottom line numbers, potentially driving Amazon past a $1 trillion market cap by 2020. In the near term, though, if AMZN stock doesn't go past the 50 day SMA again, expect to see a few weak sessions.
GoPro Inc (NASDAQ:GPRO) Stock Has Entered Overbought Territory.
GoPro Inc (NASDAQ:GPRO) reported its second quarter earnings on August 3rd, and the announcement has clearly buoyed GPRO stock. Shares of the action camera maker spiked by close to 20% on Friday, after the company cut its losses to a third of last year's number. And while revenue wasn't near its highest, GoPro's top line grew by 32% over the same quarter last year. GoPro's latest earnings have renewed the hope of a turnaround, and the stock price is reflecting this sentiment. Purely based on these factors, the stock could continue to rise in the week ahead. However, the technical charts suggest that a correction may be due later this week.
The Relative Strength Index (RSI) has gone way past 70, which is the commonly used threshold to signal overbought conditions. The Bollinger Bands also confirm this signal. GoPro's stock price has gone way past the upper Bollinger Band, which is also an indication that the stock has entered the overbought territory. GoPro's 20 day SMA is on the verge of a Golden Cross, poised to cut the 50 day SMA from below. This is generally considered a positive signal, which could aid an uptick from Friday's closing price. However, given the massive surge in the stock price, and based on the RSI and Bollinger Bands, a correction later this week shouldn't come as a surprise.
Snap Inc (NYSE:SNAP) Stock Poised For A Bullish MACD Crossover.
Shares of Snap Inc (NYSE:SNAP) have fallen heavily over the last week or so, and the story is similar if you look at a longer period. Snap stock has lost nearly 22% over the last one month, and 42% in the last three months. Clearly, the recent phase has been a disastrous one. The consistent declines had pushed the stock well into oversold territory last week. However, SNAP stock's rebound on Friday has given shareholders much-needed relief. And now, Snap shares look poised to head higher, if you were to go solely by the technical chart.
While Snap shares are no longer in oversold territory, the MACD is on the verge of a bullish crossover with the signal line. This is generally considered a positive signal. The next level of resistance for the stock comes from its 20 day SMA at 14.4, which is a fair distance away. However, talking from a fundamental standpoint, investing in Snap with a medium to long term perspective may not be a good idea right now. The company is headed for a big lockup expiry on August 14th, following its earnings release on 10th. If you're looking for more such technical trading ideas, check out our daily trading ideas section. If you're also looking to discover fundamentally solid tech stocks, you should also check out our top stock picks from the tech sector, which have beaten the NASDAQ by over 137%.