Best Stock to Trade During Upcoming Weeks
NETFLIX
Netflix stock is one of those which underperformed during the first half of 2021, and it looks like it’s time to catch up. Netflix looks like a great option for a long trade. In its campaign to upend the entertainment industry, Netflix has accomplished what few companies ever manage: its brand name has become a verb. Since introducing Netflix originals in 2013, the company has produced over 2,300 titles, which now represent over 35% of all content on its platform. Netflix reported worse than expected results after Q2, but it didn’t hurt the stock as the price gained 8% and demonstrated the biggest run since April.
Netflix, weekly chart
Bulls have been accumulating powers since the middle of April according to the RSI. A week ago, the indicator broke the resistance line of the declining channel and gained 8% shortly. The potential is not over and after a small correction the stock will grow shortly. Every correction can be сconsidered as buy opportunity in this case.
NVIDIA
Nvidia presented the magnificent Q2 earnings report. Actual revenue outperformed analytical predictions by 3% and EPS by 2% higher than expected results.
Such results were caused by video card mania, which appeared as crypto market hyped. Crypto users use video cards to mine coins, that’s why prices skyrocket in Q2.
Nvidia stock price and crypto market correlate as it is clear for everybody that crypto miners create the most demand for Nvidia’s products. That’s why analysts expect a strong Q3 earnings report.
Nvidia stock is a good choice to buy right now as the crypto market gains and video cards prices renewing their all-time highs.
Nvidia, 4H chart
Nvidia stock price has formed the rising triangle pattern. The target is measured as the vertical line connected the lowest point of the pattern and the resistance level. In this case, the target will be $230. The pattern will be declined if the price breaks through the $208 support level.
Alibaba
Alibaba stock dropped by 50% since November 2020. IT sector was pressured by the Chinese government and lots of traders and investors lost their trust in the Chinese stock market.
That’s the greatest moment to buy! As Warren Buffet said, “buy when others are fearful”. Alibaba doesn’t have any business issues and it is still one of the world's biggest online commerce company so there is doubt that the price will recover losses shortly.
During its way down Alibaba stock left many “gaps” and gaps always must be closed (at least if the company is about to become bankrupt).
Alibaba, daily chart
Alibaba fell deep according to the RSI as well. The first target will be to close the gap at $182 and the second goal is $200.