Like yesterday, there were a number of stocks within the Nasdaq 100 that made notable moves as earnings season and other catalysts are driving money back into the tech sector and firming-up its leadership role. While much of the attention has been placed on the larger names in the sector, the lesser traded companies are also making moves worth watching.
Today’s three big stock charts look at Tripadvisor Inc (NASDAQ:TRIP), Lam Research Corporation (NASDAQ:LRCX) and Regeneron Pharmaceuticals Inc (NASDAQ:REGN) after their one-day moves and they answer whether investors should be grabbing these stocks ahead of larger long-term moves.
Tripadvisor Inc (TRIP)
Stuck in an intermediate-to-long-term bearish trend, Tripadvisor was one of the leaders during Wednesday’s trading. TRIP stock’s jump made a move that most technicians will take seriously, at least over the short-term, and could lead to a recovery for the travel-related name.
- Wednesday’s move took Tripadvisor shares back above their 50-day moving average. TRIP stock had been trading below this significant trendline since breaking down in May. In addition, this trendline just shifted into an intermediate-term bullish pattern, indicating that higher prices are likely.
- The one-day surge in Tripadvisor stock also broke above the top Bollinger Band for the first time since April when we saw shares surge higher. Expect a volatility rally to target the $44 price level.
- From a long-term perspective, TRIP bounced off of the $40-price-level, which has shown itself as strong round-numbered support in the past.
Lam Research Corporation (LRCX)
Semiconductor stocks continue to heat up in this technology driven rally. Lam Research has made a recovery from the June lows and is once again threatening to make a breakout of its range.
The move would target higher prices as they now play catch-up.
- Two weeks ago, LRCX shares moved back above their ascending 50-day moving average on increasing volume. This suggests that the technical crowd is once again engaged in accumulating shares and will help drive prices higher.
- Wednesday’s move took Lam Research stock above its top Bollinger Band, initiating what is likely to be another volatility rally targeting higher prices. The last similar move was in April when shares spiked from $135 to $150.
- LRCX is again approaching its all-time highs, which will attract more investors after the recent pullback showed strength in the technical condition of the stock and eased the pressures of the shares being overbought.
Regeneron Pharmaceuticals Inc (REGN)
Biotechnology companies are really beginning to see cash flow back into the sector as the market is increasing its appetite for risk.
With many of these stocks far from their highs, there is still plenty of room for them to run higher, including Regneron.
- REGN shares have been consolidating at the $500 price point for more than a month after spiking to an oversold situation when the stock hit $540. The round-numbered support of $500 is bringing Regneron traders back in as buyers after the stock’s correction.
- REGN shares are beginning to take their lead from the shorter 20-day moving average, indicating that the faster money traders are now buying the stock off of its strength at $500.
- From a long-term perspective, Regeneron has been trading in a bull market trend since May that has been gaining strength. As a result, the 10-month trendline is getting ready to cross above the 20-month, which longer-term technical traders will take as a sign that the stock is locked in this bullish trend with much higher price targets likely.