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

Advanced Micro Devices, Inc. (NASDAQ:AMD) Stock poised for more near-term upside.

Buy AMD Stock, Sell Alibaba Stock And Gilead Stock - Today's Technical Trading Ideas_1
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Shares of Sunnyvale, California based Advanced Micro Devices, Inc. (NASDAQ:AMD) have risen for three consecutive trading sessions now, something the shares hadn't done in almost 2 months. A few days ago, we had pointed out the inability of AMD stock to shake off the downtrend it was seemingly caught up in. Well, that might be history if the bounce in AMD stock price over the last 3 trading sessions is anything to go by. AMD stock is up by over 7% in the last 3 trading sessions and if the AMD stock technical chart is something to go by, the stock is headed higher in the near term.

AMD stock closed the last trading session at a price of $13.08 a share, breaking out above the 50-day simple moving average (SMA), which currently sits at the 13.07 level. A crossover which sees the stock price/shorter term SMA rise above the longer term SMA is usually considered a bullish signal implying more upside. While the stock is only trading marginally higher than the 50-day SMA, investors should take note of the volumes which accompanied the breakout. More than 83M shares of AMD stock changed hands in the last trading session, which was nearly 70% higher than the average 30-day volume at this counter.

In addition to the bullish SMA crossover, the AMD stock technical chart also flashed a bullish MACD (Moving Average Convergence Divergence) crossover, which saw the MACD line cut the signal line from below, which is another indication of near-term upside in the stock.

AMD stock technical chart

Alibaba Group Holding Ltd. (NYSE:BABA) Stock Could Be Headed Lower.

Our second trade of the day focuses on Jack Ma founded Chinese e-commerce-to-cloud giant Alibaba (NYSE:BABA). While Alibaba is a name we are bullish in the longer term, the short-term picture might not be as rosy. Based on the signals from the Alibaba stock technical chart, Alibaba stock might be due for a pullback in the near-term.

The Relative Strength Indicator (RSI) is a popular momentum indicator used to identify overbought/oversold conditions in the markets. The commonly used thresholds to identify overbought/oversold signals are the 70/30 levels on the RSI. Alibaba stock RSI currently has an RSI reading of 70.7, which means that Alibaba has now entered the overbought zone. The bearish signal is also supported by another popular momentum indicator; The Bollinger Bands indicator. Alibaba stock price is very close to the upper band, which indicates a high chance of a pullback in Alibaba stock price. All in all, Alibaba stock might be in for a near-term correction.

Alibaba stock technical chart

Is Gilead Sciences, Inc. (NASDAQ:GILD) Stock Due For A Pullback?

Shares of pharma major Gilead Sciences (NASDAQ:GILD) have been on a tear ever since the company announced the acquisition of Kite Pharma for $11.9 billion in cash. Gilead stock is up by nearly 11% following the announcement. While most Wall Street analysts have been bullish on the deal, Leerink's Geoffrey Porges and Bradley Canino believe that the deal could be too little, too late for the HCV/HIV focused drug giant. And, well, if the Gilead stock technical chart is to be believed, investors might be losing the initial excitement as well. In other words, Gilead stock could be due for a pullback. Why?

Firstly, Gilead stock price has run significantly higher than all the key moving average, which means that the stock has little in terms of support up to the $80 level. Secondly, the Gilead technical chart flashed a bearish MACD crossover in the last trading session, which is indicative of the near-term downside risk in the stock. The bearish signal from the MACD is also echoed by the Relative Strength Indicator (RSI), which is a popular momentum indicator used by market technicians. Gilead stock currently has an RSI reading of 74.32, which is well above the threshold of 70 used to identify overbought securities.

Gilead stock technical 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 163%. Interested in automotive stock? Then, we also have our top picks from the auto sector, which have beaten the S&P 500 by over 258%.


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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