Sell AMD Stock, Hold Apple Stock And GoPro Stock: Today's Technical Trading Ideas

Advanced Micro Devices, Inc. (NASDAQ:AMD) stock could fall further.

Sell AMD Stock, Hold Apple Stock And GoPro Stock Todays Technical Trading Ideas

Shares of semiconductor company Advanced Micro Devices, Inc. (NASDAQ:AMD) have failed to sustain the momentum gained in the last week of August and are again staring down the barrel. AMD stock is down more than 7% in the month of September. The sentiment seems to have taken a hit on account of the recent pressure on AMD shares. Things don't look bright in the near-term for the AMD bulls. If the AMD stock technical chart is anything to go by, AMD stock might be headed lower. Here is why.

In the last trading session, AMD shares closed 3% lower which resulted in the stock losing a key support level. AMD stock breached its short-term 20-day Simple Moving Average (SMA) and the long term 200-day SMA. The 200-day SMA was a very strong support level for the stock and the share price fell below the support line for the first time in nearly 20 months. What this means is that AMD stock might be headed lower from here. In a change of polarity, the 200-day SMA will now be a key resistance for the stock. Now, AMD shares have fallen below all its key moving averages, be it the 20-day, 50-day, 100-day or the 200-day. The bad news for AMD bulls doesn't end there. Further, AMD stock is on the verge of a bearish Moving Average Convergence Divergence (MACD) crossover. MACD indicator is another popular momentum indicator used by technicians. A bearish MACD crossover occurs when the MACD falls below the signal line indicating decreasing momentum in a security. In AMD's case, the MACD line is very close to the signal line and could fall below the signal line as early as the next trading session. All the above signals strongly hint that AMD stock is likely to head lower from here.
AMD stock daily technical chart showing 20-day,200-day Simple Moving Averages (SMA) and MACD indicator

Apple Inc. (NASDAQ:AAPL) stock breached 20-day moving average support line.

Shares of the Cupertino based tech giant Apple Inc (NASDAQ:AAPL) did not get off to good start this month as the share price slipped on reports of iPhone production issues. AAPL stock is down more than 3% over the last 5 trading days as investors are worried after a WSJ report came out suggesting iPhone release could be delayed on account of the production problems. With all eyes on the Apple's launch event tomorrow, expectations are very high for Apple shareholders. Any negative news or disappointment could be a big risk to the stock. The recent dip has lead to the stock losing a key support level. In a bearish move, AAPL stock closed below the 20-day moving average line on Friday. The 20-day SMA has been a strong support level in the recent past and the share price has previously bounced back twice after testing it in the last two months. Apple stock has its next support from the 50-day moving average, 2.8% below the last close at $154.04. Apple stock has a lot riding on the iPhone launch event. Analysts have already warned that markets could be disappointed if the next iPhone doesn't live up to the hype. With the breach of a key support level and MACD also trending lower, Apple shares could be under pressure in the near-term. However, the initial euphoria of the launch event could see the stock price closing in the green going into the launch.
AAPL stock technical chart showing 20-day SMA, MACD and RSI indicators.

Hold GoPro Inc (NASDAQ:GPRO) stock.

GoPro Inc (NASDAQ:GPRO) stock has shot up more than 15% in the last two trading day after the company released an updated guidance. The action camera maker stated it expects Q3 revenue and gross margins to come in at the high end of the previously issued guidance. The GoPro stock technical chart flashed a bullish MACD crossover in the last trading session. A bullish MACD crossover occurs when the MACD rises above the signal line. It is an indicator of a bullish trend, indicating that GPRO stock could be headed higher in the near-term.  However, a word of caution for the GPRO bulls. GoPro's RSI measure is currently at 71.08, which is just above the commonly used overbought threshold of 70. Further, Bollinger Bands indicator is also flashing an overbought signal, as the share price has breached the upper Bollinger Band. Generally, the combination of these two indicators is considered as a strong signal which means that upside from here could be limited. In other words, a rally for GPRO stock might be short-lived. Hence, investors need to cautious.GPRO stock daily technical chart displaying Bollinger Bands, RSI and MACD indicators

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 144%. Interested in automotive stock? Then, we also have our top picks from the auto sector, which have beaten the S&P 500 by over 244%.

Sreekanth Anasa Sreekanth Anasa   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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