Trade Ideas: BAC, FORM, NFLX

Bank of America Corporation (NYSE:BAC) has a strong support around $11 from where it could attempt a bounce back. On daily chart, the technical indicators are not showing any signs of a recovery. Only the RSI has made a higher bottom which could lead to a pullback.

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Netflix, Inc. (NASDAQ:NFLX) – The daily technical indicators of the stock are losing momentum and are close to flashing some sell signals, however until near term support is broken near $235 ( 50 day sma ) it is hard to get too negative. Some indicators are displaying negative divergences as they failed to make new highs. The stock made a new high of $254.98 on April 25, but none of the technical indicators came even close to a new high. This negative divergence will help the bear cause. Insider selling also indicates bearishness. It’s because of the technical indicators and some fundamentals that I retain my bearish bias. I believe this stock is overvalued now.

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FormFactor, Inc. (NASDAQ:FORM) – Despite yesterday’s sell-off, the stock holds its 200-day moving average, which it is sitting on right now. The technical indicators are looking weak but the slow stochastic is about to show a bullish cross, with the %K touching the %D line. If FormFactor’s stock can go up again to bring %K line up, then you may want to consider buying the stock as it has plenty of room to go since ROC is at oversold level. I like this stock at current levels on a fundamental basis.

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Disclaimer : This is not an investment advisory, and should not be used to make investment decisions. Information in AC Investor Blog is often opinionated and should be considered for information purposes only. No stock exchange anywhere has approved or disapproved of the information contained herein. There is no express or implied solicitation to buy or sell securities. The charts provided here are not meant for investment purposes and only serve as technical examples. Don’t consider buying or selling any stock without conducting your own due diligence.
About Antonio Costa 324 Articles

Antonio Costa is a 35 year old part-time trader who trade stocks in the US market.

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