Day Trading Ideas based on MACD crossover signals: Buy Micron Technology stock, sell WalMart stock and sell Goldman Sachs Group Inc. stock.
The Moving Average Convergence Divergence (MACD) indicator is one of the most popular momentum indicators used by Wall Street traders. The most prominent technical trades for today, based on the MACD, are Micron (NASDAQ:MU) stock, Goldman Sachs (NYSE:GS) stock and Walmart (NYSE:WMT) stock. For more technical trading ideas based on other technical tools, do check out our daily trading ideas section.
Micron Stock Headed Higher.
Shares of Boise, Idaho based Micron Technology, Inc. have gone through a correction lately, having fallen from the $32 level to around $27 levels in a little over a fortnight. However, Micron stock has bounced back recently and is now quoting on the bourses at just under $30 a share, for a year-to-date gain of 35.4%, which is nearly two times the returns delivered by the benchmark Nasdaq Composite (INDEX:COMPX) in the same timeframe. Can the Semiconductor giant, led by Sanjay Mehrotra, continue to outperform the benchmark? Should investors buy into Micron stock now?
If the technical charts, and the MACD indicator specifically, are anything to go by, the bulls are in for a good time in the coming trading sessions. The Micron stock technical chart flashed a bullish MACD crossover in the last trading session, which saw its MACD cut the signal line from below. The bullish MACD crossover is indicative of an upward momentum. In other words, Micron stock could be headed higher over the next few trading sessions and short-term traders should consider entering the stock at current price levels.
Walmart Stock Set To Move Lower.
Shares of the retail giant, Walmart, have retraced from their recent record highs of around $81-$82 levels. However, Walmart stock could be headed lower, based on the recent signals from the MACD indicator. The Walmart stock technical chart flashed a bearish signal in the last trading session, with the MACD falling below the signal line to form a bearish MACD crossover. This implies that the recent weakness in Walmart stock could continue in the near-term.
Time To Sell Goldman Sachs Stock
The third and last MACD trade we will be looking at focusses on banking giant Goldman Sachs. Shares of the Lloyd Blankfein-led banking major are down nearly 5% in the year-to-date, underperforming the broader market as well as peers like JP Morgan Chase (NYSE:JPM) and Bank of America (NYSE:BAC). And well, the bears aren't losing control at this counter anytime soon. The Goldman Sachs stock chart just flashed a bearish MACD crossover, indicating that the current downtrend in the stock price might persist for a while.
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 142%.