Netflix Inc. Stock Breaches A Key Support Zone
Shares of Reed Hastings led Netflix (NASDAQ:NFLX) have had two extremely contrasting months. Starting last month (July) at a price of $149.41, Netflix stock rallied by 21.6% to close the month at $181.66 a piece, riding a wave of bullish sentiment on the back of a strong Q2 earnings report. The journey since then has been all downhill. The stock closed the last trading session at under $166, down 8.6% in the month so far. Even as the sentiment seems to have taken a turn for the worse, the worst might not be over for the Netflix bulls. If the Netflix stock technical chart is anything to go by, Netflix stock might be headed lower. Here is why.
Netflix stock fell below a key support level during the last trading session. The stock breached its 50-day simple moving average, falling below the support line for the first time in nearly 2 months. What this means is that Netflix stock might be headed lower from here. In a change of polarity, the 50-day SMA will now be a key resistance for the stock. The next support for Netflix stock comes from the 100-day SMA, which is 3.2% below the last closing price. However, not all is gloom and doom for the Netflix bulls. Given that two key momentum indicators are flashing oversold signals, a breakout above the resistance from the 50-day SMA could put the bulls in control of this counter. The Relative Strength Index is flashing a value of 23 for Netflix stock, which is well below the oversold threshold of 30. Hence, investors/traders looking to enter into the stock should wait for a clear breakout above the 50-day SMA or, in case of a fall, buy closer to the next resistance, the 100-day SMA.
Fitbit Inc. Stock Technical Chart Flashes A Green Signal
Fitness device maker Fitbit (NYSE:FIT) has massively disappointed the bulls, with the stock dropping by 21.7% this year. The San Francisco, California based company has come under severe pressure, having posted huge revenue declines in the last couple of quarters, as the 'Fitbit' craze has started to fade. While the company is yet to work a way out of the mess it finds itself in, the Fitbit stock technical chart does hold some positive news for Fitbit bulls.
Tha Moving Average Convergence Divergence (MACD) indicator, a popular momentum indicator used by technicians recently flashed a bullish MACD crossover for Fitbit. A MACD crossover occurs when the MACD rises above the signal line indicating increasing momentum in a security. A bullish MACD crossover is indicative of an uptrend in the stock price. In other words, Fitbit stock price could have hit a near-term bottom. In addition, the MACD also rose above the '0' centerline, which is also an indication that the stock might be in for better times ahead.
Buy WalMart Stock Now.
The third technical stock trade involves retailing giant Wal-Mart Stores Inc. (NYSE:WMT). Shares of the 'bully of Bentonville' are up 13.8% this year, outperforming the S&P 500 (INDEX:SPAL), which has gained 9.1% in the same timeframe. With the online operations picking up steam, WalMart stock might be in for better days ahead. Walmart stock price is trading 4% off its all time high of $81.99 a share, and a bounce from here can't be ruled out. Walmart stock is now in oversold territory, based on the RSI reading of 29.5, which is below the threshold of 30 used to identify oversold conditions. The encouraging signal from the RSI is also supported by the Bollinger Bands indicator. Walmart stock price is trading in close proximity to the lower band, which implies that the stock might be headed higher in the near-term.
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 check out our top stock picks from the tech sector, which have beaten the NASDAQ by over 136%. Interested in automotive stock? Then, we also have our top picks from the auto sector, which have beaten the S&P 500 by over 242%.