Buy Facebook Inc (NASDAQ:FB) stock on this breakout.
Shares of Mark Zuckerberg led Facebook Inc (NASDAQ:FB) are bouncing back after the recent sell-off and have closed in the green for four consecutive trading sessions. We had earlier in our coverage suggested to buy the dip in FB stock and rightly so, the stock has almost recovered completely from the recent dip and looks set to rise higher. We have been Facebook bulls for quite some time and FB stock also happens to be one of our top stock picks from the technology sector, which have outperformed the NASDAQ by over 150%. Coming to the charts, the recent recovery has led to some bullish signals from the Facebook stock technical chart which looks very encouraging.
In a bullish move, FB stock made multiple breakouts in the last trading session. The Facebook stock price closed above the 20-day and 50-day simple moving averages (SMA) on Friday. In addition to this, the FB stock is poised for a bullish Moving Average Convergence Divergence (MACD) crossover. MACD indicator is one of the most popular momentum indicators used by technical traders. MACD crossovers, involving the MACD line and the signal line or center line, are among the most popular signals of the MACD indicator. FB stock could see the MACD line go past the center line in a bullish move as early as the next trading session. Further, in a matter of few sessions, it could also make a bullish crossover with the signal line by the looks of it. All in all, the technical setup suggests the uptrend in FB stock is set to continue.
NVIDIA Corporation (NASDAQ:NVDA) stock finds support and is poised for a bullish MACD crossover.
Our second trade of the day focuses on Jensen Huang led NVIDIA Corporation (NASDAQ:NVDA). The amazing bull run of the GPU makers' shares had hit a minor speed bump in mid-September but they are now back on the recovery path. We also earlier suggested investors make the most of the pullback. NVDA stock is bouncing back and has gained nearly 5% in the last week. The stock has found support at its 20-day SMA after the sizeable correction. NVIDIA stock is now trading above all its key moving averages, be the 20-day, 50-day, 100-day or even the long-term 200-day SMA, yet another strong bullish sign. Just as in the case of FB stock, the NVIDIA stock technical chart suggests that the stock is on the verge of a bullish MACD crossover, implying that the stock could be headed higher in the near term. Here, in case of NVDA stock, the MACD line is set to go past the signal line in a bullish move. With the stock not anywhere near the overbought territory as per either of the popular momentum indicators, Relative Strength Index (RSI) and Bollinger Bands, it seems the stock could be again headed to its all-time highs. NVIDIA stock is also a solid long-term growth play with its growth deeply intertwined with multiple rapidly growing markets like deep learning, artificial intelligence, self-driving cars and growing popularity of e-sports.
Sell Wal-Mart Stores Inc (NYSE:WMT) Stock Now.
The third technical stock trade involves retailing giant Wal-Mart Stores Inc. (NYSE:WMT). Shares of the 'bully of Bentonville' could get caught in a downtrend as the Walmart stock technical chart is flashing some strong bearish signals. In the last trading session, WMT stock made a bearish crossover with its 100-day SMA. Previously, in a bearish move, the stock had breached the 20-day and 50-day SMAs. In addition to the bearish 100-day SMA crossover, the Walmart stock technical chart flashed a bearish MACD crossover in the last trading session, indicating that the stock might well be headed for further decline. The MACD line fell below the center line to hint a bearish scenario. WMT stock has its next support level at the $77 level just a few cents below the last close. The breach of this support level could mean the downward pressure on Walmart stock could get very strong. If you're looking for more such technical trading ideas, check out our daily trading ideas section.
Interested in automotive stock? Then, you should check out our top picks from the auto sector, which have beaten the S&P 500 by a massive 278%.