From hedge funds to individual investors, scores of market participants are turning to social media to figure out which stocks are worth watching. It's a concept that's known as "crowdsourcing," and it uses the masses to identify emerging trends in the market.
Crowdsourcing has long been a popular tool for the advertising industry, but it also makes a lot of sense as an investment tool. After all, the market is completely driven by the supply and demand, so it can be valuable to see what names are trending among the crowd.
While some fund managers are already trying to leverage social media resources like Twitter to find algorithmic trading opportunities, for most investors, crowdsourcing works best as a starting point for investors who want a starting point in their analysis.
Today, we'll leverage the power of the crowd to take a look at some of the most active stocks on the market.
Micron Technology
- Nearest Resistance: $20
- Nearest Support: $18
- Catalyst: Technical Setup
$20 billion tech firm Micron Technology (MU - Get Report) is seeing some trading volume this afternoon, as shares rally 3.4% on a technically driven move to start the week.
Micron has been looking "bottomy" since the start of the summer, forming a long-term rounding bottom setup that triggers a buy on a push through resistance up at $20. Even though this stock has made considerable progress for bulls since October began, it doesn't become a high-probability upside trade until buyers can close that last $1 gap between Micron's current share price and that $20 price ceiling.
Micron has been looking "bottomy" since the start of the summer, forming a long-term rounding bottom setup that triggers a buy on a push through resistance up at $20. Even though this stock has made considerable progress for bulls since October began, it doesn't become a high-probability upside trade until buyers can close that last $1 gap between Micron's current share price and that $20 price ceiling.
Netflix
- Nearest Resistance: $115
- Nearest Support: $95
- Catalyst: Technical Setup
Streaming video service Netflix (NFLX - Get Report) is another large technology name that's seeing big volume today for technical reasons. After last week's earnings-induced drop in Netflix, shares are testing a key dual support level this afternoon, coming off of a price floor at $95.
If that $95 line in the sand gets violated, then we've simultaneously got a broken long-term uptrend and a triggered descending triangle pattern -- two signals that wouldn't bode well for shareholders. In the meantime, Netflix appears to be catching a bid pretty well this afternoon, but it's early to join the buyers.
If that $95 line in the sand gets violated, then we've simultaneously got a broken long-term uptrend and a triggered descending triangle pattern -- two signals that wouldn't bode well for shareholders. In the meantime, Netflix appears to be catching a bid pretty well this afternoon, but it's early to join the buyers.
Intel
- Nearest Resistance: $34
- Nearest Support: $30
- Catalyst: Product Wins
Semiconductor giant Intel (INTC - Get Report) is joining in an active session for the chip sector, up 1.6% on bigvolume this afternoon following reports that the new iPhone 7 could feature an Intel-developed LTE modem. The possibility of a new generation of super-efficient smartphone components from Intel could fuel considerable unit sales in the high-turnover mobile device market, a space that Intel has been trying hard to crack with its mobile processor unit.
Technically, Intel is moving up to test a very major resistance level up at $34 this week. A successful breakout above that $34 price ceiling would clear the way to a retest of 52-week highs, a fact that makes Intel's ability to catch a bid here all the more significant. A move through $34 is a big
buy signal in Intel this fall.
By Jonas Elmerraji
No comments:
Post a Comment