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Why AMD’s Overbought Shares Will Fall Further

“Additionally, the stock’s relative strength index (RSI) has reached an overbought level, as high as 85 recently, a reading above 70 is overbought” writes Michael Kramer for investopedia.com. The failed breakout attempt at resistance would suggest shares have further to fall, by perhaps more than 8% from its current price to technical support at $13.77.There is no doubting AMD’s potential long-term growth opportunities, but that doesn’t mean shares haven’t run too far too fast.Additionally, shares of AMD no longer come cheap at its current price, with a one-year forward P/E ratio of…

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Square’s Overbought Shares May Plunge in Short Term

“The sharp rise in the stock in 2018 has been driven by strong revenue and earnings, which is expected to continue over the long term” writes Michael Kramer for investopedia.com. Square Inc.’s (SQ) stock has soared in 2018, rising by nearly 78%, but shares may be poised to pull back over the short term by about 8%, based on technical analysis.Revenue growth is also expected to be strong, with forecasts showing an increase of 32.8% to $1.952 billion in 2019, followed by growth of 33.8% in 2020.In fact, analysts currently estimate earnings to climb…

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The dollar is surging into overbought territory, warns chart watcher

“The U.S. dollar just hit its highest levels since late December, a move that’s planted it in overbought territory, according to one chart watcher” writes unknown author for cnbc.com. Higher inflation expectations in the U.S. have prompted more hawkish talk from the Federal Reserve.”However, the U.S. is continuing to expand and I think that that is very, very supportive of the expectation for higher interest rates.”. “That’s also going to be supportive of a higher dollar from here.”. The DXY U.S. dollar index tried to buck a nine-month downward trend…

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Markets News Regulators 

The US Dollar may be overbought but good data can send it higher against the yen

“A significant bulk of data awaits traders on Thursday: the politically-sensitive Trade Balance report will likely show a vast trade deficit” writes Yohay’s Google Profile for forexcrunch.com. Unit Labor Costs serves as another indicator of wage inflation Factory Orders are expected to show an ongoing expansion. Source: forexcrunch.com Share This:

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Amazon’s stock head for first loss in 8 sessions, as charts suggest ‘very overbought’ condition

“Dan Wantrobski, technical analyst at Janney Montgomery Scott, said Amazon’s stock was “very overbought by short-term technical standards.”” writes Reporter Editor for marketwatch.com. Amazon’s stock was still up 36.7% over the past three months, while the Nasdaq 100 has gained 10.5% and the Dow has tacked on 2.2%.The stock had run up 7.0% over the past seven sessions, which included five-straight record closes. Source: marketwatch.com Share This:

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GBP/USD: Reaching Overbought Territory; Not A Buy Around Current Levels – Credit Agricole

“It may have reached overbought territory” writes Yohay’s Google Profile for forexcrunch.com. Hence, the currency may well have reached overbought territory,” CACIB argues.Here is their view, courtesy of eFXnews: Credit Agricole CIB Research discusses GBP outlook and advises against buying the currency around its current stretched levels. “All eyes will be on the release of Q4 GDP and November labour data this week. Source: forexcrunch.com Share This:

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A key metric shows the stock market is at ‘extreme’ levels that are the most stretched in 20 years

“In the near-term, be aware of extreme sentiment and overbought conditions,” Morgan Stanley chief US equity strategist Mike Wilson wrote in a recent client note” writes Joe Ciolli for businessinsider.com. That’s the logic behind a technical indicator called the “relative strength index,” which Morgan Stanley says is the most stretched it’s been in 20 years when it comes to the benchmark S&P 500.Rather, it’s an indicator that will coincide with — rather than cause — a correction once the market has fully topped. Source: businessinsider.com Share This:

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The Dow could suffer a 2,400 point blow at any time, warns Wall Street legend Byron Wien

“A correction hasn’t shaken the historic market rally yet, but Wall Street legend Byron Wien says it’s “definitely” coming” writes unknown author for cnbc.com. “An overbought market with optimistic investors is vulnerable, and the question is what triggers the vulnerability?”. “Maybe the market just spontaneously begins to fade,” added Wien, who believes the markets are already borrowing performance from 2018. Source: cnbc.com Share This:

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This stock market rally is on thin ice

“Triple witching is when stock options, index options and futures all expire on the same day” writes Simon Maierhofer for marketwatch.com. This is the riskiest time for stock market bulls as seasonal weakness spans from mid-September until late October.Based on seasonality, stocks are on thin ice.However, it’s worth knowing that stocks have declined during the week after September triple witching in eight of the past 10 years. Source: marketwatch.com Share This:

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A widely followed signal on Wall Street shows tech stocks are rising too fast

“We have seen a classic midday dip in the markets Thursday because certain sectors are absurdly overbought, and the volumes have been thin” writes Robert Daemmrich Photography for cnbc.com. Regardless: a reading of 99.33 on a large index is absurdly overbought.Right now, the Nasdaq composite index has an RSI of 99.33. Source: cnbc.com Share This:

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