Here is a summary of today's most popular moving average crossovers. Netflix Inc (NASDAQ:NFLX) stock breached its 20-day moving average support line. FireEye (FEYE) stock is testing its 100-day moving average support line and Ambarella, Inc (AMBA) stock is looking to break out above its 50-day moving average line. If you want to see the complete set of technical trading ideas for today check out here.
Netflix Inc (NASDAQ:NFLX) stock could close lower today.
Shares of streaming giant Netflix Inc (NASDAQ:NFLX) have been trending lower over the past couple of weeks. Netflix stock is down by around 6% since July 26th and is likely to continue its downtrend. The stock breached its 20-day moving average support line in yesterday's trade on higher volumes, indicating a bearish trend. MACD has also made a bearish crossover a few days ago.
The stock will also come under pressure due to Walt Disney's (NYSE:DIS) announcement to pull out of its content partnership with Netflix. "With this strategic shift, we'll end our distribution agreement with Netflix for subscription streaming of new releases beginning with the 2019 calendar-year theatrical slate" Disney CEO Bob Igor said during Disney's Q3 earnings call yesterday. The House of Mouse is planning to launch its own streaming service by 2019. This doesn't augur well for Netflix. In 2012, Disney agreed to make Netflix the only subscription service to run all its films starting in September 2016.
FireEye stock is testing 100-day moving average support line.
Cybersecurity solutions provider FireEye (NASDAQ:FEYE) had recently reported its second quarter earnings, delivering a beat on both top and bottom line expectations. The security-software company reported a loss of $70.7 million, or 40 cents a share, on revenue of $185.5 million for the second quarter. FireEye also increased its full-year forecast to a range of $734 million to $746 million, up from its previous guidance of $724 million to $736 million. The strong results had pushed the stock over 6% higher in after market trade and the stock opened higher the next day. However, the stock failed to break out above the 50-day SMA resistance line and closed lower continuing its downtrend. FireEye stock has lost more than 12% in the last fortnight. FireEye stock is now testing its 100-day moving average line which had provided strong support earlier. As you can see in the chart, 100-day moving average had provided support to FireEye stock in March April period. If the stock manages to breach the 100-day support line then it could head much lower.
Ambarella stock looking to break out above 50-day moving average. MACD turns bullish.
Last two months have not been great for shareholders of Ambarella (NASDAQ:AMBA). Ambarella stock is down by over 20% since the end of May. However, the stock is making some progress of late. The stock is up over 3% in the last one week. And during yesterday's trade, Ambarella stock closed above the 50-day moving average resistance line which indicates that this nascent recovery in the stock is likely to continue. The bullish trend was further reinforced by MACD which closed above the zero center line for the first time since mid-June. Ambarella stock is likely to face its next resistance from the 100-day SMA around $54.12 level.
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