Microsoft Corporation, GoPro Inc And Valeant Pharmaceuticals Intl – Today’s Technical Trading Ideas
Microsoft Corporation (NASDAQ: MSFT) stock set for a bearish MACD crossover.
Shares of Microsoft Corporation (NASDAQ:MSFT) have largely moved sides ways since its Q3 earnings. The Redmond, Washington-based company had delivered mixed earnings results with a slight beat on earnings but missed revenue estimates for the first time since 2014. MSFT stock had done well to shrug off the initial post earnings sell-off to hit new all-time highs in the days ahead. However, from the last all-time highs, the stock has not gone anywhere. Now, the stock could be in for a further downward spell. The Moving Average Convergence Divergence (MACD) indicator for Microsoft is poised for a bearish crossover, is set to fall below the signal line. The present MACD and signal line values of the stock stand equal at 0.94. Shares of the tech giant presently have the Relative Strength Index (RSI) measure of 69.58 just below the overbought threshold of 70. The stock was heavily overbought over the past few days and has corrected since then. With MACD also on course for a bearish crossover, a further correction could be on the cards.
Valeant Pharmaceuticals Intl Inc (NYSE:VRX) stock makes yet another breakout on strong volumes.
Shares of the Canadian pharma company, Valeant Pharmaceuticals Intl Inc (NYSE:VRX) are making heavy gains after the Q1 earnings. Laval, Quebec-based Valeant’ stock is up by nearly 50% in the last 5 trading days. The stock had recently broken above its crucial 20-day and 50-day Simple Moving Averages (SMA) on rising volumes. In yesterday’s trade, in a bullish move, VRX stock price made a breakout above its long-term 100-day SMA on heavy volumes. A breakout with strong volumes suggests that the 100-day SMA could become a strong support line for the stock in near term. The next level of resistance is its 200-day SMA which presently stands at 17.76. To test the next resistance level, the stock has to gain another 29% from yesterday’s close, which could be very difficult. As Valeant already has made tremendous double-digit gains in the last few days and the stock is overbought on the basis of Relative Strength Index (RSI), as well as the Bollinger Bands. The current RSI measure stands at 86.28 comfortably above the standard overbought threshold measure of 70. The share price has also breached the upper Bollinger Band indicating an overbought condition. The next few trading sessions are vital, if the stock continues to edge higher on good volumes then it may test the next resistance level. Otherwise, the 100-day SMA is likely to act as a good support.
GoPro Inc (NASDAQ:GPRO) stock facing strong resistance from its crucial 20-day SMA.
GoPro Inc (NASDAQ:GPRO) stock was facing stiff resistance from the 50-day SMA trend line over the past few months. The stock had briefly closed above the 50-day SMA on May 2, but again fell below the trend line thereafter. Shares of the action camera maker recently made a breakout above its critical 50-day SMA but not on strong volumes. Now, GPRO stock continues to face strong resistance from its crucial 20-day SMA. GoPro may also see a bullish MACD crossover, with the MACD line extremely close to the signal line. A bullish MACD crossover and a breakout above the 20-day SMA could trigger a decent uptick in the stock price. The stock has made decent gains to recover partly after the post earning sell-off. The stock is up near 4.5% in the last 5 days. Further upside march may see a road block in the form of resistance at its 20-day SMA. If you’re a technical analyst or trader, check out our latest section dedicated to daily trading ideas based on technicals.
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