Stocks that could now start to run on Wall Street
What a beautiful moment for the American markets! The economy is growing, inflation seems to be coming back or at best staying steady, and therefore would no longer represent a danger. Rates could go up another 0.25% this year. These seem like ideal conditions for the worst to leave behind for equities. These elements are combined with probability calculations weighted on historical series which project from now on at least 48/60 months of increases in share prices. Now we’re going to study the charts of 3 stocks on Wall Street that are 20% undervalued that could start to run.
Bullish divergences and possible long-term bottom
The declines of recent months have highlighted the value of some companies (Amazon, Apple and Tesla may have left the worst behind!). In recent weeks, some stocks have been drawing higher lows and higher highs. For example, our proprietary oscillators are turning to the long-term upside on Alphabet Class A, AMD (Advanced Micro Devices) and Microsoft in recent trading days.
We proceed step by step.
3 stocks on Wall Street undervalued by 20% that could immediately leave the worst behind
Alphabet Class A (Google), last priced at $92.42. In 2022, the shares reached a maximum of 151.55, and from that level a sharp decline to current values began. The recommendations of analysts as read in specialized magazines estimate the fair value at around 125.25 with a current underestimation of around 36%.
Despite the sharp decline in recent months, the long-term trend has remained bullish. In fact, as per the criteria of classic technical analysis, the moving average at 200, 400 and 600 weeks is oriented upwards. The rise could therefore continue, indeed it could only be at the beginning. The current bearish reversal point moves to 85.82.
AMD (Advanced Micro Devices), last price at $71. Shares reached a maximum in 2021 at 164.46, and from that level a sharp decline to current values began. The recommendations of analysts as read in specialized magazines estimate the fair value at around 89.53 with a current underestimation of around 26%.
Despite the sharp decline in recent months, the long-term trend has remained bullish. In fact, even for these stocks, as per the criteria of classic technical analysis, the moving average at 200, 400 and 600 weeks is oriented upwards. The rise could therefore continue, indeed it could only be at the beginning. The current bearish reversal point moves to 60.04.
Interesting understatement
Microsoft, last priced at $239.23. Shares reached a maximum of 346.41 in 2021, and from that level a sharp decline to current values began. The recommendations of analysts as read in specialized magazines estimate the fair value at around 293.89 with a current underestimation of around 23%.
Despite the sharp decline in recent months, the long-term trend has remained bullish. In fact, as per the criteria of the classic technical analysis, the decline stopped in contact with the 200-week moving average. Those at 400 and 600 are oriented to the upside. The upside could only be just beginning. The current bearish reversal point moves to 219.
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