3 Huge Tech Stocks on Traders' Radars -- and How to Trade Them
BALTIMORE (Stockpickr) -- Put down the 10-K filings and the stock screeners. It's time to take a break from the traditional methods of generating investment ideas. Instead, let the crowd do it for you.
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 today.
Intel
Nearest Resistance: $34.80
Nearest Support: $31.50
Catalyst: iPhone Rumors, Technical Setup
Up first on our list of high-volume movers this week is chipmaker Intel (INTC) - Get Report. Shares of Intel rallied 2% yesterday, boosted by rumors that the firm could start selling communications chips for the iPhone in 2016. While those rumors alone didn't add enough fuel to buying, they came at the same time Intel was bouncing off of a key support level. Combined, those two factors gave us yesterday's bounce.
It's premature to jump into INTC here. While Intel did bounce, it's in a pretty well-defined downtrend right now. Buyers should wait for that to change before jumping in.
EMC
Nearest Resistance: $26.50
Nearest Support: $25.70
Catalyst: Analyst Downgrade
EMC (EMC) corrected by 4.5% on big volume yesterday, swatted lower by news of a downgrade from Wells Fargo. Wells cut $5 off of EMC's price target this week, citing a lack of upside catalysts this year. EMC's price action hasn't exactly been stellar heading into March, so it didn't take much to drive more selling.
Right now, shares are testing key support down at $25.70. While that level held up yesterday, EMC remains in make-or-break mode this week. If $25.70 gets violated, look out below.
Zynga
Nearest Resistance: $2.80
Nearest Support: $2.20
Catalyst: Technical Setup
Zynga (ZNGA) - Get Report continued its short-term rally in yesterday's session, jumping 2.3% by the time the closing bell rang. ZNGA has been making a move off of long-term support since the middle of February, which means it's also been showing stellar relative strength versus the S&P right now.
That said, resistance at $2.80 has proven to be more than buyers could handle on ZNGA's last four attempts through it. Anyone looking to build a position in ZNGA should wait until shares can catch a bid above $2.80.
At the time of publication, author had no positions in stocks mentioned.