Day Trading Ideas Based On RSI indicator: Buy Netflix stock, Priceline stock and Plug Power stock.
The Relative Strength Index (RSI) indicator is a popular tool used by many Wall Street traders. For the benefit of those who are not much acquainted with RSI, here's an article that will help you know more about how to use RSI for trading. The most prominent technical trading ideas for today are Netflix (NASDAQ:NFLX), Amazon (NASDAQ:AMZN) and Plug Power (NASDAQ:PLUG). For more such day trading ideas, check out our daily trading ideas section.
A rebound in Netflix, Inc. (NASDAQ:NFLX) stock price could be around the corner.
After the post earnings surge in July, Netflix stock has seen a steady decline in the month of August. Shares of the streaming giant are down more than 7% this month. The recent downtrend in NFLX stock could be partially attributed to some bearish crossovers. However, a rebound could be around the corner as the stock has entered oversold territory. The RSI indicator is flashing an oversold signal for Netflix stock. The RSI value of the stock has fallen to 18.99, which is well below the commonly used oversold RSI measure of 30. The chances of a rebound could get a further boost as the Bollinger Band indicator is also in concurrence, flashing an oversold signal. The company's share price is almost within striking distance to breach the lower Bollinger Band, to suggest an oversold condition.
Has Plug Power Inc (NASDAQ:PLUG) stock bottomed to buy again?
Plug Power stock witnessed an inevitable sell off after it posted wider than expected losses in its Q2 earnings. Plug shares have lost nearly 16% of their value since the earnings release earlier this week. The stock could be nearing a bottom for investors to buy the stock again. But, things are looking better for PLUG stock as analysts recently issued price targets which were at least double its last close. Plug stock is also testing its 100-day Simple Moving Average which has acted as strong support in 2017. However, a bottom could be in sight as Plug Power stock is in oversold zone as per the RSI indicator. The present RSI measure of the stock stands below the generally used oversold threshold of 30, at 26.60. Further, only a single cent separates the share price and the lower Bollinger Band, which also could flash an oversold signal soon.
Priceline Group Inc (NASDAQ:PCLN) stock could close in the green today.
Shares of Online travel major Priceline have been trending lower after its second-quarter results came out on Tuesday. PCLN stock is down by more than 9% since the earnings release, but the stock could close in the green today. Priceline shares have become oversold, according to the Relative Strength Index (RSI) indicator. The RSI value of the stock has fallen to 24.61, which is below the commonly used oversold RSI measure of 30. Priceline shares are further supported by the fact that the Bollinger Bands indicator is also flashing an oversold signal. Its share price has breached the lower Bollinger Band, which is considered an oversold signal.
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