Day Trading Ideas based on MACD crossover signals: Buy NVIDIA stock, sell Facebook Inc stock and sell Citigroup Inc stock.
The Moving Average Convergence Divergence (MACD) indicator is a popular tool used by many Wall Street traders. The most prominent technical trading ideas for today are Facebook (NASDAQ:FB) stock, Citigroup (NYSE:C) stock and NVIDIA (NASDAQ:NVDA) stock. For more such day trading ideas, check out our daily trading ideas section.
Facebook Inc. (NASDAQ:FB) stock headed for near term correction?
Facebook reported a solid Q2 earnings report recently. The company crushed Wall Street estimates on most counts, which was followed by a rise to fresh all-time highs around $172 levels. However, the stock had moved lower in subsequent trading sessions and could be headed even lower in the next few trading sessions. The Facebook stock technical chart flashed a bearish MACD crossover in the most recent trading session, which saw its MACD drop below the signal line for the first time in nearly a month. The last time we saw a bearish MACD crossover on the Facebook chart (in June), the stock dropped by nearly $5 before continuing on a longer term uptrend.
Time to sell Citigroup (NYSE:C) stock.
The second MACD signal for today comes from the Citigroup stock technical chart. And, well it is the bears who are gaining control at this counter as well if the MACD indicator is something to go by. The Citigroup stock technical chart flashed a bearish signal, with the MACD making a bearish crossover with the signal line. In light of this crossover on the technical chart, a correction in Citigroup stock price over the next few trading sessions won't be a big surprise.
Buy NVIDIA Corporation (NASDAQ:NVDA) stock ahead of Q2 earnings
Well, today isn't all about the bears. The NVIDIA stock technical chart had something to cheer for the bulls, with encouraging signs ahead of the NVIDIA's upcoming Q2 earnings announcement. Shares of the Santa Clara, California based GPU maker are flirting with their all time highs at the $172 levels. NVIDIA stock price is up over 60% this year (2017), and we might still be far away from the peak, if the MACD indicator is to be believed. The NVIDIA stock technical chart flashed a bullish signal, which saw the MACD cut through the signal line from below forming a bullish MACD crossover. What this means is that NVIDIA stock will, more likely than not, continue its uptrend, provided we don't see any shockers in the earnings announcement later today.
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%.