Day Trading Ideas Based On RSI indicator: Buy Walt Disney Co stock, Chipotle Mexican Grill, Inc. stock and AT&T Inc. stock.
Here is the summary of today's top day trading ideas based on Relative Strength Index (RSI). Walt Disney Co (NYSE:DIS), Chipotle Mexican Grill (NYSE:CMG) and AT&T Inc.(NYSE:T) have all entered oversold territory as per RSI indicator. Is it time to buy these stocks again? Let's take a closer look. For more such day trading ideas, check out our daily trading ideas section.
Is the correction in Walt Disney Co (NYSE:DIS) stock over?
Shares of Disney have seen a correction after its latest earnings release. DIS stock is down nearly 8% in the month of August alone which is big enough by Disney standards. The post earnings weakness got much stronger by a rare bearish crossover for Disney stock which had occurred last more than 12 months back. However, the correction in Disney Stock could be coming to an end. DIS stock has moved largely sideways in the last 5 trading session. Now, 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 22.54. Further, the share price is also not that far from the lower Bollinger Band, which also could flash an oversold signal soon.
Will the free fall in Chipotle Mexican Grill, Inc. (NYSE:CMG) stock price come to end anytime soon?
There has been no respite for Chipotle Mexican Grill shareholders since the news of food safety concerns about the burrito makers offerings broke out in June. The shares of Chipotle have been in free fall losing 36% of their value in the last three months. Even its latest earnings in last week of July failed to stem the rot for the food chain company. However, a bottom could be in sight and the investors could breathe easy soon. The RSI indicator is flashing an oversold signal for CMG stock. The RSI value of the stock has fallen to 23.39, 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 very close to flash an oversold signal. The company's share price is almost within striking distance to breach the lower Bollinger Band.
Is the post earnings downtrend in AT&T Inc. (NYSE:T) stock coming to an end?
Shares of telecom giant AT&T have trended lower since the company reported its earnings on July 27. Before the earnings AT&T stock had a good run by it own standards but after the earnings release, it has been mostly downwards movement. The first hint that this downtrend could be coming to an end is that the AT&T stock is in oversold zone. The current RSI value of the stock is 27.48, which is below the common oversold threshold value of 30. However, the Bollinger Band signal is yet to flash an oversold signal. AT&T stock price is still quite some distance from the lower Bollinger Band to signal an oversold condition. Investors must be better cautious here and have a close look at the charts before making a move.
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