3 Rebound Candidates With Technical Tailwinds

When volatility reigns, many investors seek shelter in low-beta sectors and dividend-paying stocks. But volatility also creates opportunities for investors who can stomach the ups and downs, which is why risk seekers often turn to technical analysis. Fundamentals are the biggest influence on long-term stock performance, but technical indicators can pinpoint when trends flip, enabling day and swing traders to capture profits from short-term movements. Here are three stocks hiding in the volatility that could be on the verge of a major trend reversal.

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Using Technical Indicators Like MACD and RSI to Identify Momentum Shifts

March has certainly been a volatile month, and with the Iran war still raging, this environment is likely to persist through April. Technical analysis becomes a valuable practice when markets are gyrating and momentum swings like a pendulum. Let’s review the mechanics of two crucial momentum oscillators before moving on to the stock picks:

• Moving Average Convergence Divergence (MACD) Indicator - Uses two exponential moving averages (EMAs) to measure momentum and identify trend shifts. The 12-day EMA is plotted against the 26-day EMA, and the difference between the two is shown on a 9-day EMA, known as the signal line. When the signal line crosses above the MACD line, it’s a sign that bullish momentum is building.
• Relative Strength Index (RSI) - An indicator that measures the magnitude of price changes using 14 days of average gains and average losses. The RSI is handy for identifying overbought and oversold stocks with a simple 0-100 scale. If the RSI rises above 70, the stock is overbought, meaning the upward momentum is nearing its zenith. Likewise, an RSI below 30 is oversold, suggesting a bullish trend reversal.

3 Stocks With Technicals Pointing to a Trend Reversal

Using the MACD and RSI, we’ve identified three formerly downtrodden stocks that could be poised to reverse. However, remember that technical trading is time-consuming and difficult, and only experienced investors should attempt day and swing trader strategies.

Wayfair: Tariff and Trend Relief Could Mark the Bottom

The retail sector was hit hard by tariffs, especially those dependent on cheap imports like Wayfair Inc. NYSE: W. Furniture imports were a point of contention for the Trump administration’s IEPPA tariffs, but those have now been struck down, and companies like Wayfair can apply for relief.

The tariff decision was likely a ‘buy the rumor, sell the news’ event, as many investors predicted that Trump’s tariffs wouldn’t hold up in court. But now that the fundamental picture is improving, the stock may have finally found a bottom after a lengthy decline. A bullish MACD cross points to improving buying momentum, and the RSI is once again trending up after a month in oversold territory.

Lyft: Floor Could Be In for Beleaguered Rideshare Company

Lyft Inc. NASDAQ: LYFT will likely always be Robin to Uber Technologies Inc. NYSE: UBER’s Batman, but this market is plenty big enough for two entrants. LYFT shares are down more than 30% already this year, erasing all the gains procured since last August, and putting the stock basically back where it was a year ago. However, this $13 level has proved sticky for buyers and could be a floor where bullish momentum builds. Additionally, despite the company’s struggles, analysts still have an average stock price target of $19.63, implying upside of over 50%.

Technical trend shifts on the MACD and RSI support the triple bottom theory. A bullish MACD cross highlights the potential reversal, and the RSI is beginning to bounce off the oversold threshold, which it did back in August before jumping 80% in just three months.

Caesars Entertainment: Technical Signals Hinted at Potential Catalyst

Shares of Caesars Entertainment Corp. NASDAQ: CZR entered a new atmosphere when news dropped that Houston Rockets and Golden Nugget casino owner Tillman Fertitta was planning a takeover bid. The bid was reportedly for $7 billion, which would value the company at $34 per share, a significant premium to the current share price of around $28 per share. Caesars is currently the second-largest Las Vegas operator, with a $5.8 billion market cap and a portfolio of properties that includes Caesars Palace, Planet Hollywood, Harrah’s, and The Cromwell.

Casino stocks had been under tremendous pressure from online sportsbooks like DraftKings Inc. NASDAQ: DKNG and prediction markets like Kalshi and PolyMarket, which are now available through brokers like Webull and Robinhood Markets Inc. NASDAQ: HOOD. But despite the wave of new competitors, Caesars reported $2.9 billion in revenue in Q4 2025, a 4.2% year-over-year (YOY) growth rate that easily surpassed analysts’ expectations. The takeover bid has sparked talk of spinning off the digital gaming business, which is seeing record revenue growth and could unlock future capital for debt reduction.

News of Fertitta’s bid dropped on March 11, but the rumors have apparently been floating for longer as the stock is up more than 55% in the last month alone. CZR has been a capital killer over the last five years, losing more than 70% of its value, so this breakout is a long-awaited respite for investors. Multiple technical indicators signal a bullish trend reversal, including a cross above the 200-day and 50-day moving averages and a bullish MACD crossover. The histogram also suggests upside momentum remains strong, so this rally could still be in the early innings.

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