Big Market Rally, Some Tech Stocks Still Struggle
This morning, the major stock indexes are soaring higher in a broad based advance. As we know, the major stock indexes have been under pressure over the past month. At this time many traders are wondering if this rally is just a short term bottom, or just a one day bounce from a very oversold condition. In any case, the markets are higher at the start of the day. Despite this morning's rally, there are a few stocks that struggling to stay positive and we shall review them.
Netflix Inc.(NASDAQ:NFLX) is one of the leading stocks in the NASDAQ 100(NASDAQ:QQQ). This morning, NFLX stock is trading lower by 0.10 cents to $257.11 a share. This stock remains strong on the daily chart by trading above its daily chart 50 and 200 moving averages. Netflix stock is usually very volatile during the trading week leading up to an options expiration which is this Friday. Traders should watch for NFLX intra-day support around the $256.00 area. Should the stock decline further the next important intra-day support level will be around the $254.00 area. Please remember this stock is very volatile.
Cisco Systems Inc.(NASDAQ:CSCO) is another leading NASDAQ stock that remains weak this morning. The stock is trading higher by 0.07 cents to $15.13 a share. CSCO stock is trading below all of its major moving averages on the daily chart and this puts the stock in a weak technical position. Traders can watch for intra-day support around the $15.03 and $14.75 levels. Stocks that are in confirmed down trends and fail to rally in strong markets should usually just be avoided as long trades.
Nuance Communications Inc.(NASDAQ:NUAN) is a leading tech stock that continues to hold above its daily chart 50 moving average. This stock is trading higher by 0.10 cents to $20.66 a share this morning. Short term traders can look for intra-day support around the $20.50 area. Should the stock decline further during the trading session the $20.00 area will be the next important support level.