Amazon Stock Technical Chart Flashes A Sell Signal
Jeff Bezos led Amazon (NASDAQ:AMZN) has had a rough week on the bourses. Amazon stock price is down by more than 5% following the Q2 earnings announcement last week. If the Amazon stock technical chart is anything to go by, the worst is not yet over for the bulls. Amazon stock might be headed lower, based on the bearish signal from the Moving Average Convergence Divergence (MACD) indicator, which is a popular momentum indicator. The MACD on the AMZN technical chart flashed a bearish centerline crossover in the last trading session, with the MACD line falling below the zero level. This is a strong bearish signal, indicating that the current downtrend might continue over the near-term.
Sell Valeant Pharmaceuticals Stock And Run?
Giving Amazon stock company was Valeant Pharmaceuticals Intl Inc (NYSE:VRX), which has dropped by nearly 12% over the last couple of weeks. The Valeant stock technical chart also mirrored Amazon's bearish signal, with the MACD line dropping below the centerline, indicating that Valeant stock price might come under more pressure from the bears in the coming trading sessions. Valeant stock price has made 1%+ moves in each of the last 4 trading sessions, accompanied by huge volumes, which is something investors should take note. Apart from the huge selling pressure, Valeant investors should be ready to face extreme volatility following the latest earnings announcement yesterday.
Technical charts say, 'Buy Kite Pharma stock'.
The third trade for the day involves yet another name from the pharma industry, Los Angelos, CA based Kite Pharma (NASDAQ:KITE). The clinical-stage biopharmaceutical company has had a phenomenal run this year, up over 167% in the year to date, crushing the stellar market returns by a staggering margin. And, if you are a KITE bull, here is some good news. The bullish run isn't ending anytime soon. The MACD indicator has just flashed a bullish signal, with the MACD rising above the signal line in the last trading session. This is an indication that the current rally in Kite is here to stay.
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 145%.