Walt Disney Co. (NYSE:DIS) Stock Flashes A Buy Signal.
Shares of Burbank, California headquartered Walt Disney Co. (NYSE:DIS) have been in a downtrend for the major part of this year. A 'decent' performance in its Q3 didn't help matters, with the company missing on the top line while beating on the bottom line. For a stock caught up in a downtrend similar to the one Disney stock finds itself in, decent is rarely enough to turn things around. Moreover, Disney stock investors have largely ignored the positives in the face of rising concerns surrounding ESPN. However, the stock has eked out some meager gains over the last couple of weeks, rising by 1.4% over this timeframe. The big question is: Has the stock printed a bottom? Well, the Disney stock technical chart answers in the affirmative, which makes Disney our first 'Top Stock To Buy Today'.
The Moving Average Convergence Divergence (MACD) indicator is one of the most popular momentum indicators used by chartists. As per Investopedia, "Moving average convergence divergence (MACD) is a trend-following momentum indicator that shows the relationship between two moving averages of prices. The MACD is calculated by subtracting the 26-day exponential moving average (EMA) from the 12-day EMA. A nine-day EMA of the MACD, called the "signal line", is then plotted on top of the MACD, functioning as a trigger for buy and sell signals." MACD crossovers, involving the MACD line and the signal line, are among the most popular signals of the MACD indicator.
A bullish MACD crossover sees the MACD line cutting the signal line from below. Conversely, a bearish MACD crossover sees the MACD line fall below the signal line, indicating that the security price could be headed lower in the near term. The Disney stock technical chart flashed a bullish MACD crossover in the last trading session, indicating that the stock might well have printed a near-term bottom. In addition, the Relative Strength Index (RSI) for Disney stock currently read 31.1, which is just above the oversold threshold of 30 used by most chart observers. A fall below the 30 level will be further proof that Disney stock might be headed higher in the near term and hence, investors should keep a close watch on the Disney Stock Technical chart.
Ambarella, Inc. (NASDAQ:AMBA) Stock Is A Good Buy.
Our second 'Top Stock To Buy Today' is Ambarella, Inc. (NASDAQ:AMBA), a developer of low-power, high-definition (HD) and Ultra HD video compression and image processing solutions. Just as in the case of Disney stock, the Ambarella stock technical chart flashed a bullish MACD crossover, implying that the stock could be headed higher in the near term. In addition to the bullish MACD crossover, the RSI reading for Ambarella is also close to the oversold threshold of 30, with the RSI indicator currently flashing a value of 32.4. While the combination of the two indicators makes a strong case for a bounce in the stock price, the upside could be limited as the stock currently trades below all the key moving averages. Hence, investors buying in now need to keep a close eye on the resistance from the SMAs, which could limit upside from the current price levels.
Buy Wells Fargo & CO. (NYSE:WFC) Stock Today
The third trade for the day takes us to the world of Financials, a sector which has outperformed the broader markets in the last few trading sessions. Wells Fargo (NYSE:WFC) has been at the head of this charge. Embroiled in the fake accounts scandal since late last year, Wells Fargo stock has trailed the broader markets for a major part of the year. However, the stock is up nearly 3.5% in the last five trading sessions, outperforming its peers as well as the S&P 500 (INDEX:SPAL). The important question: Can Wells Fargo stock sustain this rally?
The latest rally has seen Wells Fargo stock rise by nearly 7% over the last couple of weeks. More importantly, this rally has seen Wells Fargo stock make multiple bullish crossovers over the last few trading sessions. After breaching its 20-day and 50-day SMAs (Simple Moving Averages) over the last week, the stock has now risen above the 100-day SMA, which is yet another proof of the strength of this rally. In addition to the bullish SMA crossovers, the Wells Fargo stock technical chart had flashed a bullish MACD crossover a few days ago, which is further proof that the stock is 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 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 259%.