Tesla Inc (NASDAQ:TSLA) stock is now in oversold territory.
Shares of Elon Musk led electric carmaker Tesla Inc (NASDAQ:TSLA) are down by over 15% since hitting a new all-time peak in mid-September. Tesla stock has failed to break off from the downtrend and has largely moved sideways at the beginning of October before embarking on another major downward move losing more than 9% since the mid of last week. However, the continuous downhill run also raises the question whether a bottom is in sight for Tesla stock or not. If one goes by the TSLA stock technical chart, a bottom might be around the corner and the stock may soon rebound.
As can be seen from the Tesla stock technical chart above, the recent downtrend has taken Tesla stock into oversold territory, according to the popular technical indicator; Bollinger Bands. The Bollinger Bands indicator is flashing an oversold signal as the share price has breached the lower Bollinger Band. Moreover, the Relative Strength Index (RSI) reading of the stock fell to 30.20, marginally above the commonly used oversold threshold limit of 30. This means Tesla stock could be soon in oversold territory as per Relative Strength Index indicator as early as the next trading session. Generally, the combination of the above two indicators is considered as a strong signal and indicates that Tesla stock is very close to bottoming out. With earnings around the corner, the chances of a rebound look much better.
BlackBerry Ltd (NYSE:BB) stock could come under further pressure.
Shares of Ontario, Canada based software company BlackBerry Ltd (NYSE:BB) have risen sharply since reporting earnings last month but have lost momentum over the past few weeks. The sharp post earnings price movement has also raised a temptation among some investors to book some profits as the turnaround in BlackBerry appears to take much longer time than expected. There were question marks over the shares of John Chen led company could hold on to the post earning gains. Now, if one takes a look at the BlackBerry stock technical chart, there are some signs which suggest that BB stock could come under further pressure.
As you can see from the image below, BB stock is also set to witness a major bearish crossover. BlackBerry stock's long-term 100-day simple moving average (SMA) is all set to go past the shorter-term 50-day SMA from below. In technical analysis parlance, a long-term moving average going above the shorter term moving average is seen as a bearish indicator. The 100-day SMA is separated from the 50-day SMA by just a single value and could go past the 50-day SMA as early as the next trading session. With Moving Average Convergence Divergence (MACD) indicator also trending downwards, this major bearish crossover could put the BlackBerry stock under pressure in the immediate near-term. In the absence of any major catalyst, the BB stock could test its next support level soon which stands at 9.96.
Apple Inc. (NASDAQ:AAPL) Inc stock is facing stiff resistance.
Tim Cook Led Apple Inc (NASDAQ:AAPL) is heading into an important period with its much talked about iPhone X opening up for pre-order today and having its quarterly earnings scheduled next week. Apple stock has struggled for the major part since the launch of its new products for various reasons. With Apple stock fortunes fluctuating recently, one major positive was the significant drop in short interest in the stock. Apple stock short interest declined by more than 10% in the latest fortnight. However, If Apple bulls were hoping that soon AAPL shares could break the shackles and resume its uptrend, then they should have a second thought.
The Apple stock technical chart offers some key insights about the stock's near-term movement. AAPL stock is presently facing stiff resistance at its crucial 50-day Simple Moving Average (SMA). The stock has failed to move above the 50-day SMA since making a bearish crossover with it last month. For Apple 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 $153 and $160. With iPhone X pre-order opened, a lot would be riding on the initial response to the bookings as well as the estimated shipping time. In the middle of all this, Tesla stock has found support at its 20-day SMA. A breach of this support level could mean more downside for Tesla stock. Given all this, the earnings could be the catalyst for Apple stock.
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