If Ja Rule is going to start trading stocks, he should consider the company that makes Pro Tools: $AVID. (February 02, 2021)
GSX AVID SPY
This is Scott with your Chart of the Day. I want to take a look at Avid Technology ( NASDAQ: AVID ).
I, like many others, saw Ja Rule talking about stocks on CNBC the other day, and I have got to tell you, I’m excited. I think it’s great that Mr. Rule is coming into the market. If he is going to trade stocks actively I think he should definitely consider looking at Avid Technology ( NASDAQ: AVID ) because this is the company that makes Pro Tools.
Pro Tools is a program that a lot of musicians use to produce their music. In fact, if you go on their website they have a great deal right now; if you sign up for Pro Tools you can get 3 months of unlimited Auto-Tune, what a deal, right?
If you take a look at the Avid ( NASDAQ: AVID ) chart we have a lot of good things going on right here. We have a well-defined uptrend above all of the major moving averages, the 8 exponential, the 21-day exponential, and the 50-day simple.
Avid ( NASDAQ: AVID ) has been able to hold nicely above these moving averages and is developing a really nice trend. Even on Friday, when it looked like the market was going to zero, this stock did not break below its 21-day exponential period moving average, showing some really relative strength in a choppy market.
Today we closed just under a recent level of resistance. You can see here how the price got kind of bumped around at 19.20. Here, it bumped around at 19.25; and today, again, it stopped right at 19.20.
What I want to see from Avid ( NASDAQ: AVID ) is a move above 19.25 coming on higher than average volume. If we can get above and stay above that level, this stock could break out. I have an alert right around 19.25 and I will be looking for that volume surge and a push to the upside, and I think you should too. So set some alerts, put it on your Watch List and we will see how it trades tomorrow.
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