Do Not Ignore This Set-Up $AMBA Swing Trade 40% ROE 3 (notes)

The Imminent Ambarella (AMBA) Stock Move

How to Trade the $AMBA Move: Price Targets | Buy Sell Triggers | Time Cycles #swingtrading #daytrading

Ambarella (AMBA) stock has dumped from the mid 60's to the mid 40's since early January 2018 (a huge short side win - the Trump effect) and is now near recent historical lows (the Trump effect catalyst and run-up from September 2017 to January 2018).

Below is Part 1 of 2 parts for a detailed trading plan for Ambarella. You will find a trading plan for the bullish thesis and levels to watch for a bear thesis leading in to earnings in 39 days (June 5, 2018) and a critical time-cycle completion on the chart model at / or near the same timing (approximately June 9, 2018).

In the trading plan I include price targets, support and resistance levels, buy sell triggers and time cycle completions.

I encourage you to stay on top of this set-up because the gains to the upside on a simple retrace are at least 30% and more likely 40% or more over 3 months (if the bullish thesis plays out).

Using this technical set-up you will know how to exploit the move for a much greater return if are an active trader (of course this is not required for an excellent gain) and you trim long positions in to resistance in anticipation of moderate retrace and add above each resistance after each retrace.

The Ambarella Trading Plan Detail.

The AMBA chart structure has had my curiosity for some time, it has traded very clean and predictable through the model I have been using. The support and resistance areas at the key Fibonacci levels (price) react well, the time cycles are spot on and the trend is your friend with this stock.

We alerted the run up in late 2017 and the down turn in 2018 - both were fantastic trend trade set-ups.

I am expecting we will see yet another turn in price trend leading in to earnings and the time cycle completion in early June, 2018.

Trade Set-Up Catalyst(s):

Earnings: Nasdaq website link for Ambarella earnings: AMBA Earnings Date Earnings announcement* for AMBA: Jun 05, 2018.

Time Cycle: This set-up is excellent in that the timing cycle on the trading range peaks in and around (just after) the scheduled earnings date. From a technical perspective, the dates could not be lined up better (see technical charting below).

Historical Support / Lows: AMBA hit low 40's in September 2017 and ran up to mid 60's by January 2018. The September lows were perfect to a time cycle peak and I'm looking at them as a technical catalyst for the trade.

The Trump Effect: The Trump effect was massive on this stock play, a simple Google search and $STUDY will show you the obvious effect on this and related plays.

And This is Why AMBA Could Be a Grand Slam Trade Opportunity | Emotional Investing and Trading.

A quote from this widely read article, "Will Computer Vision Lift Ambarella Higher?" written by Nicholas Rossolillo, and published to The Motley Fool April 23, 2018 sets up the bull wash-out snap-back thesis perfect leading in to earnings... and if you look around some you will see many such media sentiment...

This trade set-up is continued click here; Do Not Ignore This Trade Set-Up | $AMBA Swing Trade | 40% ROE 3 Mos (Part 1 of 2)

Comment:

$AMBA hitting alerted targets - Part 1 of 2: How to Trade the Move. Do Not Ignore This Trade Set-Up | 40% ROE 3 Mos compoundtrading.com/...e-3-mos-part-1-of-2/

Comment:

Part 2 – The Battle Plan | How to Trade the $AMBA Move compoundtrading.com/...trade-the-amba-move/