Sell Tesla Stock And Amazon Stock, Buy Netflix Stock: Today's Technical Trading Ideas

Tesla Motors Inc. Stock Breaches Key Support Zones

Sell Tesla Stock And Amazon Stock, Buy Netflix Stock - Today's Technical Trading Ideas
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Shares of Elon Musk-led Tesla Inc (NASDAQ:TSLA) have displayed extreme volatility this month. Starting the month in the midst of a sell-off, Tesla stock went on to test $319 price levels before bouncing off the 100-day simple moving average (SMA), making a comeback, driven by solid commentary on Model 3, to climb over key resistance from the 20-day and 50-day SMAs. However, the climb through the first half of the month has been brought to a grinding halt by a pullback, which has once again brought Tesla stock into a zone where the downside risk might be high.

Tesla stock price fell by over 4% in the last couple of trading sessions, a fall which saw Tesla stock close below the key 20-day and 50-day SMAs, both of which are only a dollar apart. With Tesla stock facing resistance from these key moving averages, Tesla stock might be headed lower to test the 100-day SMA, which, at 331.46, is still 4.6% below the last closing price. In addition to the resistance from the moving averages, Tesla stock is also on the verge of flashing a bearish MACD crossover. A continuation of the current downtrend could see the stock complete a bearish MACD crossover, which will be yet another confirmation of the downward pressure on Tesla stock.

Tesla stock technical analysis chart

Amazon.com, Inc. (NASDAQ:AMZN) Slips Below Crucial Support

Giving Tesla company, Washington, Seattle based Amazon (NASDAQ:AMZN) also saw its shares fall below a crucial support level. Amazon stock price breached the 100-day simple moving average (SMA), which has been a crucial support level for the stock on multiple occasions in the past one year. As we had pointed out in our recent Amazon coverage, the stock is heavily oversold. Profit booking and anti-Amazon commentary from President Trump could have played a large role in sending Amazon stock lower in recent trading activity.

We believed that the stock was set for a bounce. However, the breach of the 100-day SMA does alter the story. The 100-day SMA had not been breached by Amazon stock price in the whole of 2017, and in this context, the breach could be a signal of fresh bearish momentum. In a change of polarity, the 100-day SMA will now be a crucial resistance level, implying that the bearish sentiment around Amazon stock might continue for the next few trading sessions. Currently sitting at $966 levels, the 100-day SMA is less than 1% away from the last closing price of Amazon stock.

Amazon stock technical analysis chart

Netflix, Inc. (NASDAQ:NFLX) Looks Good For A Bounce.

Online streaming leader, Netflix (NASDAQ:NFLX), is one stock which has seen a massive correction in the recent trading sessions. Not too long ago, the stock changed hands at $188+, following a solid Q2 earnings announcement. However, the Los Gatos, California based online streaming giant has been unable to maintain the momentum. As a result, Netflix stock closed the last trading session at a price of $166.54 apiece, down 13% from its all-time high of $191.5, which was hit on July 21. So, will Netflix stock continue to chart a downward path? Or, are we in for a bounce?

If the Netflix stock technical chart is anything to go by, Netflix stock price could well have bottomed out. Netflix stock price is currently flirting with its 50-day SMA, which has been a crucial support zone for the stock. In addition, the Relative Strength Index (RSI), a popular momentum indicator used by chartists, is also flashing a positive signal for Netflix bulls. The current RSI reading for Netflix sits at 23.4, which is a fair distance below the commonly used threshold of 30 used to identify oversold conditions in stocks. Taking into consideration the signals from the technical charts, Netflix stock will likely chart an upward path over the next few trading sessions.

Netflix stock technical analysis chart

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 142%. Interested in automotive stock? Then, we also have our top picks from the auto sector, which have beaten the S&P 500 by over 237%.


Virendra Singh Chauhan Virendra Singh Chauhan   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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