Can Tesla Inc (NASDAQ:TSLA) stock bounce back to recover some lost ground?
Shares of Elon Musk led Tesla Inc (NASDAQ:TSLA) have failed to bounce back in a strong way after the healthy correction. Tesla stock has mainly traded sideways over the last one month and has also remained range-bound for the majority of the same duration. TSLA stock also fell below $300 mark briefly in November. Investors hoping for a bounce were disappointed as the shares were in for a resistance at the $318 level, having failed twice in the last month to close above that mark. In the month of December, TSLA stock is again closing on that level. Now, the question is, whether Tesla stock can bounce back to recover some lost ground, starting with breaking the resistance at the $318 level. The TSLA stock technical chart has some insights which could suggest which way the stock could go from here.
The technical chart suggests that Tesla shares have also been facing resistance at its 20-day simple moving average. However, TSLA stock could be in for more trouble ahead as the stock is on the verge of a major bearish crossover. The stock could see a bearish 'death cross' as early as the next trading session. Investopedia defines 'death cross' as a crossover which " occurs when the short-term, 50-day moving average, also called a price trend, crosses below the long-term, 200-day moving average. As long-term indicators carry more weight, this trend indicates a bear market on the horizon and is reinforced by high trading volumes. " The 50-day and 200-day SMA's of Tesla stock are just separated by a few cents, so, a death cross is imminent in the next few trading sessions. Tesla stock last saw such bearish crossover in October last year, more than 1 year back, and this crossover resulted in a significant correction last time as well. So, Tesla shares could come under pressure in the immediate near-term.
Can Valeant Pharmaceuticals Intl Inc (NYSE:VRX) stock rise further after the recent pop?
Shares of Canada based specialty pharma company Valeant Pharmaceuticals Intl Inc (NYSE:VRX) registered a double-digit pop in the last trading session, Friday, December 8th. However, there was no obvious catalyst for the recent gains. The 11% pop could have been on account of carryover news and a general move higher in the broader market. Now, after the latest pop, investors would be wondering, can VRX stock continue to rise further from here? Will the rally in Valeant stock continue? The answer to this could be partly found in the VRX stock technical chart.
If one takes a look at the chart above, we could see that Valeant stock is set for a bullish crossover called 'golden cross'. It is defined 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. The golden cross indicates a bull market on the horizon and is reinforced by high trading volumes." In Valeant stock's case, it is the shorter-term 50-day SMA poised to go past the longer term 100-day simple moving average in a bullish move. However, a word of caution for investors, the current Relative Strength Index (RSI) reading is at 85.03, which is well above the commonly used overbought threshold of 70. This clearly suggests that the stock is in overbought territory. Further, on Friday, the share price also breached the upper Bollinger Band as well to signal an overbought condition. Both popular momentum indicators suggest an overbought signal, and generally, the combination of these two indicators is considered as a strong signal, hinting that the upside could be limited.
Is Walt Disney Co (NYSE:DIS) stock in for downside?
Entertainment and media conglomerate Walt Disney Co (NYSE:DIS) stock closed in the red for four consecutive sessions giving up much of its recent gains. The sell-off is believed to be largely driven by the news of the company being very close to acquiring Twenty First Century Fox (NASDAQ:FOX) and its production assets emerging again. Investors would be worried whether the recent downward pressure could bring DIS stock again to the $100 mark. Will Disney stock reverse the trend and close in the green? Well, the technical set up doesn't seem to be that favorable for Disney shares.
As one can see in the DIS stock technical chart above, the stock is facing stiff resistance at its long-term 200-day moving average. Presently, Disney shares lie below the 200-day SMA. Further, DIS stock made a bearish crossover with its short-term 20-day SMA in the last trading session. That's not all, Disney 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 and the stock has lost momentum. The stock has its next major support level at its 100-day SMA, which is four levels below its last close.
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