Ambarella Stock Testing 50-day Simple Moving Average.
Ambarella (NASDAQ:AMBA) stock is currently testing its 50-day simple moving average support line. As can be seen in Ambarella's Technical analysis charts, AMBA stock was in a strong downtrend, forming lower lows and lower highs over the past six months. However, the trend changed after the stock formed a double bottom pattern. Double bottom is a trend reversal pattern which indicates that the stock is likely to go up. After forming the double bottom pattern, the stock rallied, gaining around 10%. However, the rally was brought to a halt after the 100-day and 200-day simple moving averages formed a death cross. A death cross occurs when a shorter period moving average cuts a longer period moving average from the top. It is a strong bearish signal. The death cross was accompanied by a bearish crossover between MACD and signal line. Ambarella stock has been in a decline ever since.
Ambarella stock is now trading in the crucial support region. The stock is currently testing its 50-day SMA trendline. If the support holds, and the stock bounces back, the trend reversal will then be complete. The stock will likely go on to make higher highs and higher lows. AMBA stock also has support from the lower band of the Bollinger bands. However, if Ambarella stock breaches this support, then it could go much lower.
Intel Inc stock is facing resistance from 100-day moving average.
Shares of semiconductor company Intel (NASDAQ:INTC) have been in a downtrend since January 27th when the stock closed at $37.8. Since then, Intel shares have been in a continuous decline. As shown in the Intel technical analysis chart, the stock breached the support from critical moving averages and has closed below the 100-day simple moving average line. 100-day SMA had provided support to Intel stock in mid-Feb when the stock bounced back after closing below 100-day SMA. However, the stock started retreating after meeting with a strong resistance from the 50-day moving average trend line. The 100-day moving average is acting as a strong resistance for Intel stock since the beginning of the month. The stock is again testing the 100-day moving average. MACD is also bearish for the stock.
First Solar stock in a downtrend.
Shares of the renewable energy company, First Solar (NASDAQ:FSLR) have been in a downtrend since the end of February when the stock hit a high of $37.9 and relative strength index showed that the stock was overbought. Since then the stock is down almost 14%. FSLR stock breached the support provided by 20 day and 100-day SMAs. In fact, in a bearish move, 20 day and 50-day moving averages recently formed a death cross. As mentioned earlier in the post, a death cross occurs when a shorter period moving average cuts a longer period moving average from above. FSLR stock continued its steep decline following the death cross. In another bearish signal, MACD line crossed below the center line indicating that the downtrend is likely to continue.
Also, the short interest is increasing in First Solar stock indicating a rising bearish sentiment. In the latest round of reporting, the number of shares shorted jumped by 10%, from 16.8 million to 18.6 million shares. For now, the downside pressure on the First solar stock is likely to continue.
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