Alibaba, QUALCOMM, Inc. And Plug Power Inc -Today's Top Stock Trading Ideas

Is Alibaba Group Holding Ltd (NYSE:BABA) stock losing momentum?

Alibaba, QUALCOMM, Inc. And Plug Power Inc -Today's Top Stock Trading Ideas
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Shares of Jack Ma led Chinese eCommerce giant Alibaba Group Holding Ltd (NYSE:BABA) have had a stellar year with more than 110% gains in the year-to-date. The shareholders are a happy lot with the kind of run BABA stock has had this year coupled with the spectacular earnings performances of the Asian online retail behemoth. We have been bullish about Alibaba stock for some time and we still consider it to be a good long-term buy. However, Alibaba stock has failed to take off even after the strong singles day sales which jumped to $25.3 billion much higher than Black Friday and Cyber Monday sales. Of late BABA stock has come under pressure, losing momentum after the initial uptick post-earnings. If the Alibaba stock technical chart is something to go by, BABA stock could be under more pressure in the immediate near-term. Here is why.
BABA stock chart

In the last trading session, Alibaba stock saw a bearish crossover with its Moving Average Convergence Divergence (MACD) indicator, which is a popular momentum indicator used by technical traders. The MACD line fell below the signal line to form a bearish crossover, which implies that the downward pressure could continue for the next few sessions. Alibaba stock has its next support level at its 20-day simple moving average (SMA), just a few cents away from the last close at 180.95. A breach of this support level could mean the downtrend could continue further. However, even in the case of the breach of support level at the 20-day SMA, one could expect the stock to bounce back from the 50-day SMA which has acted as a very strong support level for the whole of 2017.BABA Technical chart

Can QUALCOMM, Inc. (NASDAQ:QCOM) still move higher after the recent pop?

Smartphone chip giant QUALCOMM, Inc. (NASDAQ:QCOM) stock is having its best run this year since the sell-off due to Apple (NASDAQ:AAPL) and other lawsuits at the beginning of the year. Qualcomm stock is almost 30% up in November. The take over bid by another semiconductor company Broadcom (NASDAQ:AVGO) has been the main driving force behind the reversal of fortunes for QCOM stock rather than a change in the fundamental story of the San Diego, California based company. Qualcomm board has rejected the $70 per share acquisition offer saying the bid is too low setting up for a proxy fight. The higher than usual volumes have been also vital for the stock'sustained uptrend. However, the upward surge in QCOM stock is beginning to cool off with the share price being almost flat over the past few days. The question now is, Can Qualcomm stock still climb higher from here? The answer to this could be partly found in the QCOM stock technical chart.Qualcomm (QCOM) stock technical chart

 

If one takes a look at the chart above, we could see that Qualcomm stock is set for bullish breakout pattern called the 'golden cross'. Investopedia defines this crossover as "a bullish breakout pattern formed from a crossover involving a security's short-term moving average (such as the 15-day moving average) breaking above its long-term moving average (such as 50-day moving average) or resistance level. As long-term indicators carry more weight, the golden cross indicates a bull market on the horizon and is reinforced by high trading volumes."

In case of QCOM stock, the shorter term 50-day simple moving average (SMA) is all set to break above its long-term 200-day SMA, separated by just a few cents, which are also the most commonly used moving averages for 'golden cross'. Investors should also note that this is the first time in almost 18 months this bullish crossover is set to occur. And, the last time Qualcomm stock made 'golden cross', it set out on a rally. However, a word of caution for investors, the current Relative Strength Index (RSI) reading of 76.17, which is well above the commonly used overbought threshold of 70, suggests that the stock is in overbought territory, hinting that the upside could be limited. Though the Bollinger Bands indicator is not flashing an overbought signal and generally the combination of these two indicators is considered as a strong signal.

Is a bottom in sight for Plug Power Inc (NASDAQ:PLUG) stock?

The sell-off in alternative energy technology company Plug Power Inc (NASDAQ:PLUG) doesn't seem to stop after its Q3 earnings release last week. Plug Power stock dropped another 5.8% yesterday and has lost more than 25% of its value after the earnings announcement. The Latham, New York-based company delivered a non-GAAP earnings loss of 4 cents, which was in-line with the analyst estimates on revenue of $61.43 million, bettering the expectations by $5.64 million. The revised full-year adjusted gross margin falling below the company's previous guidance of 8% to 12% also had not gone down well with the investors partially contributing to the sell-off. Now, if one take's a look at the PLUG stock technical chart, they would be rather disappointed as the downtrend is likely to continue for some time now going by the technical set up.PLUG Technical chart

As one can see in the chart above, Plug Power stock made a bearish crossover with its 100-day SMA in the last trading session. The stock lost a crucial support level at the 100-day SMA which has acted as a strong support level over the past few months. Earlier on Monday, PLUG stock had made a bearish MACD crossover, as the MACD line fell below the '0' line. With a string of bearish crossovers, the downhill run of Plug Power stock is likely to continue. A bottom may be still some distance away as the stock is not in the oversold zone as per both popular momentum indicators Relative Strength Index (RSI) and Bollinger Bands. Only the Bollinger Bands indicator is flashing an oversold signal as the share price breached the lower Bollinger band yesterday. However, the current RSI reading is at 37.58, well above the general oversold threshold measure of 30. So, PLUG stock is yet to bottom out.

Looking for fundamentally strong tech stocks like Apple? Check out Amigobulls' top stock picks from the tech sector, which have beaten the NASDAQ by over 160%. 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 267%. If you're a trader though, you should check out our daily trading ideas section for daily, free updates on the latest crossovers and other popular technical signals.


Sreekanth Anasa Sreekanth Anasa   on Amigobulls :

Neither Amigobulls, nor any members of its staff hold positions in any of the stocks discussed in this post. The author may not be a certified/registered investment advisor, and the opinions expressed should not be treated as investment advice.

Buying and selling of securities carries the risk of monetary losses.Readers/Viewers are advised to carry out their own due diligence and consult their investment advisors before making any investment decisions.

Neither Amigobulls, nor the author have any business relationship with any of the companies covered in this post.

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