Sell AMD, Valeant Stock And Walt Disney Co - Top Crossover Trades For Today

Here is a summary of today's most popular moving average crossovers. Advanced Micro Devices, Inc (AMD) stock made a bearish crossover with its 50-day moving average support line. Valeant Pharmaceuticals Intl Inc (NYSE:VRX) stock closed below the 50-day and 100-day moving averages and is down 10% in yesterday's trade. Shares of Walt Disney Co (NYSE:DIS) are headed down after the 200-day and 50-day moving averages made the feared death cross. If you want to see the complete set of technical trading ideas for today check out here.

Advanced Micro Devices, Inc (AMD) stock breached 50-day moving average support.

Shares of Advanced Micro Devices, Inc (NASDAQ:AMD) stock closed below the crucial 50-day moving average line during yesterday's trade, indicating that the stock is likely to continue its downtrend.  The 50-day moving average is generally considered a strong support line. As you can see from AMD technical analysis, the 50-day moving average has provided strong support to the stock price over the last three months. However, after yesterdays bearish crossover, the 50-day moving average will act as a resistance. Reinforcing the 50-day SMA crossover, in a bearish move MACD also closed below the zero line. AMD stock is now trading around its 100-day moving average line, which had provided support to AMD stock in yesterday's trade. AMD stock had bounced back after testing the 100-day moving average line. If 100-day moving average fails to provide support, AMD stock could head much lower.

AMD stock has been in a downtrend after hitting a ten year high on July 25th. AMD had reported strong earnings, delivering a beat on top and bottom line and had also raised its next quarter guidance. However AMD stock is down 9% since then.

AMD stock technical chart

Valeant Pharmaceuticals Intl Inc (VRX) stock closes below 200-day moving average line.

As we had warned in our yesterday's technical post, shares of specialty pharma company Valeant Pharmaceuticals Intl Inc (NYSE:VRX) continued to tumble. Valeant stock had rallied around 9% on Tuesday, after the company had reported its earnings, before closing the day just 2% higher. And as we had mentioned yesterday, MACD had crossed below the centerline, indicating a bearish trend. Well, during yesterday's trade, Valeant stock tanked nearly 10%. And in doing so, Valeant stock breached the 50-day and 200-day support line. This is a major bearish signal, indicating that the stock will continue its downtrend. Valeant stock is down over 20% in the last couple of weeks, and given the major bearish technical indicators, it is likely to extend these losses.
VRX Technical chart

Walt Disney Co (NYSE:DIS) stock makes the feared death cross.

Shares of the entertainment giant, Walt Disney (NYSE:DIS) were down 4% yesterday. Apart from the un impressive earnings report, there was a major technical development which contributed to this decline. Disney's 200-day moving average has crossed below the short-term 50-day moving average, creating the much-feared death cross. A death cross is a very strong bearish signal. The last time such a crossover occurred in Disney stock was in January 2016. And the stock had witnessed a very sharp correction of close to 11.5% in a little over a fortnight. Such price movement is very strong by Disney's standards. Apart from the death cross, MACD has also turned bearish. All in all, the prognosis doesn't look very encouraging for Disney stock.

disney technical analysis 10th august


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Kumar Abhishek Kumar Abhishek   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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