Valeant Pharmaceuticals Intl Inc (NYSE:VRX) stock is now in oversold territory.
Shares of Quebec, Canada based specialty pharmaceuticals company Valeant Pharmaceuticals Intl Inc (NYSE:VRX) have failed to recover completely from the post-earnings selloff till date. Valeant stock has been in a continuous downtrend since then, the worst coming in this month, with the stock losing more than 12% of its value. However, the continuous downhill run also raises the question whether a bottom is in sight for Valeant stock or not. If one goes by the VRX stock technical chart, a bottom might be around the corner and the stock may soon rebound.
As can be seen from the Valeant stock technical chart above, the recent downtrend has taken VRX stock into oversold territory, according to two popular technical indicators; Bollinger Bands and Relative Strength Index (RSI). After yesterday's close, the RSI reading of the stock fell below the commonly used oversold threshold limit of 30 to 27.46 suggesting an oversold condition. Moreover, the Bollinger Bands indicator is also flashing an oversold signal as the share price has breached the lower Bollinger Band. Generally, the combination of the above two indicators is considered as a strong signal and indicates that Valeant stock is very close to bottoming out.
Apple Inc. (NASDAQ:AAPL) Inc stock is heavily overbought.
Tim Cook Led Apple Inc (NASDAQ:AAPL) has been all over the news since its latest iPhone launch. At the same time, Apple stock has come under pressure after the company's recent product launches received mixed reviews. AAPL stock has largely moved sideways for the majority of the month of October but seems to have slowly gathered some momentum over the last few trading sessions. However, the Apple stock technical chart is giving some mixed signals suggesting that the recently gained momentum could be difficult to sustain. As we have covered repeatedly in the past, we are bullish on the long-term prospects of the Cupertino, California based tech behemoth. However, the short-term picture is not as encouraging.
The Apple stock technical chart recently saw a bullish signal from the Moving Average Convergence Divergence (MACD) indicator, which is a popular momentum indicator used by technical traders. In a bullish MACD crossover, the MACD line cut the '0' center line from below and went past it. However, AAPL stock is also heavily overbought. The share price is precariously close to the upper Bollinger Band separated by just a few cents and the chart clearly suggests that the stock has retreated on breaching the upper Bollinger Band on most occasions. Further, the Relative Strength Index (RSI) measure of Apple stock is also very high at 85.33, well above the common overbought threshold limit of 70. All this suggests that Apple stock is at best a hold in the near-term.
Tesla Inc (NASDAQ:TSLA) stock is facing stiff resistance.
Shares of Elon Musk led Tesla Inc (NASDAQ:TSLA), after a high flying performance over the last one year, up more than 83%, seemed to have hit a speed bump of late. Tesla stock is down nearly 8% in the last one month and has failed to break above the $357 level. The Model 3 woes have not helped the TSLA stock either, which has continued to put the stock under pressure. If Tesla bulls were hoping that soon Tesla shares could break the shackles and resume its uptrend, then they could be in for a disappointment in the near-term.
The Tesla stock technical chart offers some key insights about the stock's near-term movement. TSLA stock is presently facing stiff resistance at its crucial 20-day and 50-day Simple Moving Averages (SMA). The stock has failed to break out above these two SMAs since making a bearish crossover with them last month. For Tesla stock to resume its uptrend, it needs to break this resistance. In the whole month of October, the stock has traded within the range of $340 and $357. What's more worrying is that Tesla stock's short-term 20-day SMA is poised to go below its longer-term 100-day SMA. A short-term moving average going below a longer-term moving average is generally considered as a bearish sign. In the middle of all this, Tesla stock has found support at its 100-day SMA. A breach of this support level could mean more downside for Tesla stock. Given all this, Tesla stock could continue to be under pressure in the near-term.
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