George Soros is no investing slouch. He hires bright analysts and portfolio managers, including a technical analyst. He has been around the block a few times and knows how to manage a big position.
Here is my technical take on five technology stocks that Soros has big bets on as of the most recently reported quarter.
In this daily chart of Polycom (PLCM) we can see a mostly sideways trend the past 12 months, but with some volatility. Prices have traded above and below the 50-day and 200-day moving averages the past year and are currently below those averages. The on-balance-volume, or OBV, line recently turned lower, telling us that sellers have turned more aggressive with more volume traded on days when Polycom has closed lower on the day.
All this means is that Polycom is likely to pull back to $10 or so in the weeks ahead. A double bottom at $9 is not out of the question.
Prices are below the 50-day and 200-day averages and momentum left the building.
eBay will need to close above $26 to improve the chart picture, but in the meantime a drift down to $22 is more likely.
This daily chart of Viavi Solutions (VIAV) - Get Report is probably going to need more base-building. Prices are above the 200-day moving average, for now, but below the 50-day. The OBV line moved up with prices and has made a shallow dip.
Prices are more likely to have a shallow correction to $5.50 or so while a strong move above $7 would be needed to inspire the bulls.
We don't have a lot of history to work with on this chart of PayPal (PYPL) - Get Report . Prices have become stalled in the past three months. We are below the 50-day moving average, and it looks like we will retest the 200-day average.
The OBV line has been weak this month, telling us that the bears are more aggressive now. Momentum is flat and not offering any positive (or negative) insights.
TheStreet's Jim Cramer holds PayPal stock in his Action Alerts PLUS charitable trust. "At its core, the business remains attractive as its breadth of services creates a flywheel effect, keeping consumers and merchants in the loop and enticing them to reuse PayPal's various platforms," Cramer and Research Director Jack Mohr wrote on Friday. "We remain intrigued by the growth opportunities, but again, we want to be sure we fully understand the risks."
Facebook (FB) - Get Report is still in an uptrend above the rising 50-day and 200-day averages. The company seems to have made all the right moves since going public, and people seem to love the product. When people think of "social," they think of Facebook.
Despite all the fans, we need to point out some risks. Prices made new highs this month, but the OBV line did not. This is only a couple weeks old so we can't say it is a condition that has gone on for months. The momentum indicator is pretty flat, so prices could tip either way. People seemed to be lined up to buy Facebook stock on weakness, but we'll have to see how committed they are if and when a pullback happens.
Facebook tested its 200-day moving average in January. We could be due for another test in the weeks ahead.
TheStreet's Jim Cramer holds Facebook stock in his Action Alerts PLUS charitable trust. Cramer and Jack Mohr addressed Facebook's underperformance last week, writing on Friday that "there is nothing to worry about in this name. Facebook continues to fire on all cylinders (as evidenced by its recent blowout quarter) and has many levers of growth to pull in the coming years, of which it has only scratched the surface."