Day Trading Ideas Based On The RSI indicator: Buy Exxon Mobil stock, Buy eBay Inc stock and Sell Vascular Biogenics stock.
The Relative Strength Index (RSI) is a technical analysis tool which is used to measure the speed and change of price movements of a security. For the uninitiated, here's an article about how to use RSI for trading. The most salient technical trading ideas for today are Exxon Mobil (NYSE:XOM) , eBay Inc (NASDAQ:EBAY) and Vascular Biogenics Ltd (NASDAQ:VBLT). For more such day trading ideas, check out our daily trading ideas section.
Exxon Mobil Corporation (NYSE:XOM) stock could end its sideways movement.
Shares of Exxon Mobil have largely moved sideways in the first half of August. XOM stock is down by more than 2.5% in the same timeframe. Exxon also currently trades below its key Simple Moving Averages (SMA), be it the 20-day, 50-day, the 100-day and even the long-term 200-day moving average. However, there's some good news for Exxon shareholders as the stock has entered oversold territory as per both, the Relative Strength Index (RSI), and Bollinger Band indicators. The RSI value of the stock has fallen to 29.88, which is below the commonly used oversold RSI measure of 30. The Bollinger Band indicator is also in concurrence, flashing an oversold signal, as the share price has breached the lower Bollinger Band. The combination of the two momentum indicators is usually considered as a strong signal and this could mean that a rebound in XOM stock is around the corner.
eBay Inc (NASDAQ:EBAY) stock is in oversold territory.
eBay stock could not take off strongly after its second quarter earnings release in July. EBAY stock has seen a gradual decline since then, losing nearly 5% of its value. Presently, eBay stock enjoys a strong support at its 100-day SMA and it is facing a stiff resistance at its 50-day SMA. However, the stock has entered oversold territory as per RSI indicator. The present RSI measure of the stock stands below the generally used oversold threshold of 30, at 28.43. Further, the share price is precariously close to the lower Bollinger Band, with few cents separating the two, which also could flash an oversold signal soon. eBay shares may soon chart their way up.
Vascular Biogenics Ltd (NASDAQ:VBLT) post earnings upside could be limited.
Shares of Vascular Biogenics are up more than 5% in the last trading session. Atherosclerosis and cancer drug maker reported its second quarter results on August 14. The company delivered a Non-GAAP loss per share of 18 cents on a revenue of $1 million. VBLT stock upside after the earnings could be limited since two popular momentum indicators flash an overbought signal. The RSI value of the stock has risen to 77.65, which is above the commonly used overbought RSI measure of 70. Vascular Biogenics shares are further at risk given the fact that the Bollinger Bands indicator is also flashing an overbought signal. Its share price has breached the upper Bollinger Band, which is considered an overbought signal.
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