Sell Baidu Stock, Lendingtree Stock, Guess Stock - Top MACD Trades For Today

Baidu Inc (NASDAQ:BIDU) stock sees bearish MACD crossover.

Shares of Chinese search giant Baidu Inc (NASDAQ:BIDU) could be headed lower, if you go by the Moving Average Convergence Divergence (MACD). For the uninitiated, the MACD 'is a trend-following momentum indicator that shows the relationship between two moving averages of prices. The MACD is calculated by subtracting the 26-day exponential moving average (EMA) from the 12-day EMA. A nine-day EMA of the MACD, called the "signal line", is then plotted on top of the MACD, functioning as a trigger for buy and sell signals.' Typically when the MACD cuts the signal line from above, falling below it, the signal is bearish, indicating a potential decline. And the reverse is true when the MACD line cuts the signal line from below, rising above it.

Baidu stock technical chart - MACD crossover

In the case of Baidu, the MACD has made a bearish crossover with the signal line. As is visible from the chart, the MACD has fallen below the signal line, suggesting that the stock could correct from here. The stock had entered overbought territory, with a Relative Strength Index (RSI) reading of much more than 70, the commonly used threshold to determine overbought conditions. The stock price was also touching the upper Bollinger Band, which is another signal of overbought conditions. The next level of support for the stock is at its 20 day Simple Moving Average (SMA), at just over $213 a share. Do note that technical indicators are only signals, and not guarantees of a move in either direction.

Lendingtree Inc (NASDAQ:TREE) stock could be headed lower.

The technical charts for Lendingtree Inc (NASDAQ:TREE) stock show a nearly identical picture. Lendingtree shares were in overbought territory until recently. The stock price was touching the upper Bollinger Band, and the RSI had a reading of well over 70. In fact, even at the moment, the RSI is very close to 70. Meanwhile, Lendingtree's MACD has made a bearish crossover with the signal line, falling below it. All put together, the stock looks set for a decline in the near term. The next support level for the stock is at its 20 day SMA at $210 a share.

Lendingtree stock technical chart - MACD crossover

Guess, Inc. (NYSE:GES) stock testing key support level.

Shares of Guess Inc (NYSE:GES) are testing support from their 20 day SMA. If Guess shares manage to stay above this support level, the decline might stop. However, if they don't, we may see a further correction from these levels. Guess stock's MACD has made a bearish crossover with the signal line, suggesting that a further correction may be due. Trading in the next few sessions could determine whether the stock stabilizes or continues to fall.

Guess stock technical chart - MACD crossovers

 

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 143%.


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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