Day Trading Ideas, MACD crossover signals - Buy International Business Machines (IBM) stock and sell Intel (INTC) stock.
The Moving Average Convergence Divergence (MACD) is a popular trend following momentum indicator used by technicians. The MACD indicator can be used to identify buy/sell signals in the market and today's most popular stocks flashing MACD signals include technology giant International Business Machines (NYSE:IBM), semiconductor manufacturer Skyworks Solutions (NASDAQ:SWKS) and chipzilla Intel (NASDAQ:INTC). As defined by Investopedia, "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." So, what exactly are the MACD signals being flashed by today's top MACD trades and how should investors interpret them?
Time To Buy International Business Machines Corp.
MACD crossovers are one of the most popular signals generated by the MACD indicator. These crossovers can be bullish, when the MACD cuts the signal line from below, or bearish when the MACD line falls below the signal line. While a bullish crossover is an indication of incremental upside momentum, a bearish MACD crossover indicates increased downside risk for a stock. Fortunately for the IBM stock bulls, the IBM stock chart just flashed a bullish MACD crossover, which saw the MACD rise above the signal line. Based on the MACD readings, IBM stock should chart an upward course in the next few trading sessions.
Intel Corporation Stock Is Headed South.
Intel Corporation stock is the second MACD trade for today. And, Intel stock has something for the bears. Shares of Intel started this month around the $33 level before climbing to $36 levels. The last few sessions have seen Intel stock shed a dollar, dropping to $35.8 as of the last close. However, the pullback might be far from over, if the MACD indicator is anything to go by. The Intel stock technical chart flashed a bearish MACD crossover which saw the MACD line drop below the signal line, indicating that the bears will be in charge of this counter over the next few trading sessions.
Skyworks Solutions Inc. Stock Is Headed Higher.
Skyworks Solutions investors have had a memorable year. Skyworks stock price is up nearly 42% year-to-date, easily beating the 17.9% gains made by the Nasdaq Composite (INDEX:COMPX) in the same timeframe. However, the rally is far from over and the MACD indicator is flashing a signal which should be cheered by Skyworks bulls. The Skyworks stock technical chart registered a bullish MACD crossover, with the MACD rising above the signal line. This indicates rising momentum in the name, and Skyworks stock should continue to rise in the next few trading sessions.
For more technical trading ideas based on other technical tools, do 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 145%.