Sell AMD Stock, Buy Valeant Stock, Gilead Stock: Today's Technical Trading Ideas

Advanced Micro Devices Inc. Stock Facing Strong Resistance.

Shares of Sunnyvale, California-based Advanced Micro Devices Inc (NASDAQ:AMD) are facing strong resistance from its 100 day Simple Moving Average. The stock has been under pressure for the last month or so, having lost over 17% since the 26th of July. AMD shares have found support at their 200 day SMA, which is currently at about 12.11. However, after bouncing back from those levels, the stock is facing strong resistance from the 100 day SMA at 12.56. Even if the stock breaks out above this resistance, the next resistance will come from the 20 day SMA at 12.71. So, even though the Moving Average Convergence Divergence (MACD) looks set to make a bullish crossover by rising above the signal line, AMD stock could move lower in the coming days given the strong resistance from moving averages. There are some positive news stories pertaining to AMD today. However, with rising geo-political tensions, we might just see a broad market correction today, and the risk-off sentiment is likely to hurt stocks like AMD, which are still up heavily over the last 12 months.

AMD stock technical chart 29 Aug

Valeant Stock Finds Support, Sees Bullish Crossover.

Shares of Valeant Pharmaceuticals Intl Inc (NYSE:VRX) have found support at their 200 day SMA after hitting a resistance level at their 20 day SMA. Valeant stock has struggled to break out above the 20 day SMA lately, and has fallen further after recently testing the moving average. The stock has now found support at its 200 day SMA and looks set to bounce back, also because its MACD looks set to rise above the signal line, marking a bullish crossover. If the stock manages to break out above this resistance level, the next resistance is quite some distance away, at 15.84, suggesting there's good room for upside. The stock is also far from oversold territory, based on both, the Bollinger Bands, as well as the Relative Strength Index (RSI).

VRX Stock technical chart 29 Aug

 

Gilead Stock Set For Bullish MACD Crossover.

Shares of Gilead Sciences Inc (NASDAQ:GILD) recently went past their 20 day SMA, which is a bullish signal in itself. Additionally, the stock is on the verge of seeing a bullish MACD crossover. Gilead's MACD is poised to rise above the signal line, which will further the bull case for the stock. The stock is some distance away from entering overbought territory as well. So, there's not much that can drag the stock from a technical perspective. The stock also showed a double bottom pattern before breaking out above the 20 day SMA, which suggests that the current positive momentum is strong. Gilead may fall today due to the bearish broader market sentiment. However, this bullish thesis looks poised to play out in the coming days.

GILD stock technical chart 29 Aug

 

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 134%. Interested in automotive stock? We also have our top picks from the auto sector, which have beaten the S&P 500 by over 245%.


Vikram Nagarkar Vikram Nagarkar   on Amigobulls :

Neither Amigobulls, nor any members of its staff hold positions in any of the stocks discussed in this post. The author may not be a certified/registered investment advisor, and the opinions expressed should not be treated as investment advice.

Buying and selling of securities carries the risk of monetary losses.Readers/Viewers are advised to carry out their own due diligence and consult their investment advisors before making any investment decisions.

Neither Amigobulls, nor the author have any business relationship with any of the companies covered in this post.

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