Buy AMD Stock, Amazon Stock, Sell Nvidia Stock - Today's Technical Trading Ideas

Advanced Micro Devices Inc (NASDAQ:AMD) Stock Finds Support.

Shares of Sunnyvale, California-based Advanced Micro Devices Inc (NASDAQ:AMD) have tanked lately. And after a big correction, the stock is now close to oversold territory. Further, it's also finding support from a key moving average. AMD stock looks poised to rebound from these levels and move higher in the coming days, if it manages to stay above the 200 day Simple Moving Average (SMA).
The recent correction has pushed the stock below its 20 day SMA, 50 day SMA, and finally the 100 day SMA. However, it is finding support at its 200 day SMA, which could potentially stop the decline. AMD stock is close to oversold territory. It is generally considered a strong signal when the Bollinger Bands and Relative Strength Index (RSI), both signal oversold or overbought conditions. In this case, the stock has entered oversold territory as per the Bollinger Bands, since the stock price is touching the lower Bollinger Band. The RSI is currently higher than the commonly used threshold of 30, but it's not too far away. Though the signal isn't very strong, when combined with the support from the 200 day SMA, the decline looks set to stop. The next level of resistance from the stock will come around the $12.73 mark, from its 100 day SMA.

AMD stock technical chart - Advanced Micro Devices Inc - NASDAQ - AMD

 

Amazon.com Inc (NASDAQ:AMZN) Stock Finds Support.

Amazon.com Inc (NASDAQ:AMZN) is another tech stock which has corrected significantly following its earnings release a few days ago. Amazon's earnings numbers missed estimates leading to the fall. AMZN stock has now found support at its 100 day SMA, and since the stock has remained above this support level for two days in a row, the support seems to be strong. If Amazon stock continues to sustain above this level, an uptick could be on the cards in the coming days. Like in the case of AMD, Amazon's RSI is currently higher than the oversold threshold of 30, at about 39. However, the stock has entered oversold territory, if you go by the Bollinger Bands. The next level of resistance will come from the 50 day SMA, which is currently at $996. The 50 day SMA has been a strong support prior to this breach, which makes it a strong resistance level, taking into account the change in polarity rule. Since this is also close to the psychological $1000 mark, this may turn out to be a strong resistance.AMZN stock technical chart - Amazon Inc - NASDAQ - AMZN

 

NVIDIA Corporation (NASDAQ:NVDA) Stock Breaches Key Support Levels.

NVIDIA Corporation (NASDAQ:NVDA) stock has breached key support levels, and looks poised to head lower. Nvidia's 20 day SMA had been serving as a support level until Friday, when the stock fell sharply. This recent fall was a big gap down, which is a bearish signal in itself. Further, the decline has suddenly pushed the stock to breach key support levels. Nvidia stock has fallen below its 20 day SMA and 50 day SMA. Both these SMA's could now be considered strong resistance levels. If NVIDIA stock doesn't bounce back above the 50 day SMA today, a further correction could be on the cards. In addition to these moving averages, there's also a bearish signal from the Moving Average Convergence Divergence (MACD). The MACD has separated from the signal line to move lower. And while the stock looks oversold if you look at the Bollinger Bands, the fact that there are several bearish signals suggests that the correction may not end just yet. While we like Nvidia stock from a fundamental standpoint, based on technicals, its investors might want to avoid the stock in the near term.NVDA stock technical chart - Nvidia Corporation - NASDAQ - NVDA

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 139%. 


Vikram Nagarkar Vikram Nagarkar   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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