Amazon.com, Inc. (NASDAQ:AMZN) stock technical chart flashes a strong buy signal.
Jeff Bezos led Amazon.com, Inc. (NASDAQ:AMZN) is the first pick in our 'Top Stocks To Buy Today', based on technical indicators. Shares of the Seattle, Washington based online retail giant are making a good recovery after hitting a 4 month low in the last week of September. Amazon stock is up nearly 5% since the lows and looks set to test the psychologically important $1000 mark again. The $1000 mark has eluded the stock since its mediocre second-quarter earnings, the stock coming very close in early September but failed to breach the mark. However, if the Amazon stock technical chart is something to go by, we believe AMZN stock might be set to breach the $1000 mark this time around. Here is why.
Just a few days back, we had suggested Amazon stock makes for a good short-term buy. Now, the AMZN stock's technical chart is flashing a strong buy signal. After yesterday's trading session, Amazon stock made multiple breakouts above its key moving averages. The stock had made a bullish crossover with its 20-day and 50-day simple moving averages (SMA). The last closing price is just a few levels below its 100-day SMA, presently at 982.77, which has also acted as a strong support level for the stock in 2017. A bullish crossover with the 100-day SMA as well could go a long way in the stock resuming its uptrend.
That's not all. The Moving Average Convergence Divergence (MACD) indicator, which is a popular momentum indicator used by technical traders made a bullish crossover with the signal line on October 4th. The stock is now poised for a bullish crossover above the '0' center line and could go past the center line as early as the next trading session indicating that Amazon stock might be in for a move higher.
Netflix, Inc. (NASDAQ:NFLX) stock could still move higher.
Shares of streaming giant Netflix , Inc. (NASDAQ:NFLX) popped more than 5% in the last trading session, driven by higher than usual volumes. The trading volumes were almost four times the average daily volume over the last month. High volumes accompanying a price rise, is generally considered a bullish sign. With Q3 earnings around the corner and the Los Gatos, California-based company's latest move to increase its subscription prices starting this month, which is being seen as a good strategic move, the investor sentiment is very upbeat. Now, if one goes by the Netflix stock technical chart, then the stock could head much higher from here.
The recently gained momentum had helped NFLX stock to break above the resistance at the 20-day SMA. Now, just as was the case with the Amazon stock technical chart above, the Netflix stock technical chart has seen a bullish MACD crossover. The MACD line rose above the signal line to form a bullish crossover, which implies that the uptrend should continue over the next few sessions. However, a word of caution for the Netflix bulls. The upside from here could be limited as NFLX stock is in the overbought territory according to the Bollinger Bands indicator. The share price has breached the upper Bollinger Band to signal an overbought condition. However, the Relative Strength Index (RSI) indicator is yet to flash an overbought signal. The present RSI measure stands at 63.66, not far away from the overbought threshold of 70. Generally, the combination of the above two indicators is considered as a strong signal. Hence, investors need to keep a close eye on Netflix stock's RSI readings.
QUALCOMM, Inc. (NASDAQ:QCOM) stock finally sees some bullish signs.
The third and final 'Top stock to buy today' is the San Diego, California-based QUALCOMM, Inc. (NASDAQ:QCOM). Shareholders of the smartphone chip giant have had a frustrating year with the company plagued by its legal troubles. Qualcomm stock had recently fallen to its one year low and is still down nearly 22% in the year-to-date. Lately, QCOM stock has found support at its 20-day SMA and was facing resistance at the 50-day SMA level. However, the Qualcomm stock technical chart is flashing some bullish signals, implying that the stock might be set for an uptick from these levels.
In yesterday's trade, Qualcomm stock finally broke the resistance at the 50-day SMA and made a bullish crossover with it. QCOM stock closed above the 50-day SMA for the first time in more than two months. Further, the stock could make a bullish MACD crossover with the '0' center line as early as the next trading session. The MACD line and the center line have intersected and MACD line is set to go past it in a bullish move. Hence, an uptick in Qualcomm stock price over the next few trading sessions should not come across as a surprise.
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 151%. Interested in automotive stock? Then, we also have our top picks from the auto sector, which have beaten the S&P 500 by a whopping 281%.