So this is a big earnings week fellow traders and padawans. AMD is reporting on Tuesday after market close with an expected $0.41 per share. Last years' report for the same quarter was $0.27. According to an Investopedia article, "Analysts estimate that AMD's quarterly gross margin will be the second-highest in nearly four years, though it will show only a small improvement from the same quarter a year ago". If the estimate consensus materializes I believe it could catalyze the price above ATH of $99.23 last December.
WHY AMD LOOKS GOOD HERE?
In addition to the earnings being expected to be around 50% higher than last year, there are several indicators that corroborate a bullish scenario:
1. After falling about 13% from ATH, the price reversed on a doji candlestick which can be seen as an exhaustion of sell position and increase in buying positions
2. The price traveled all the way from below the 50ema to above the 14/21 emas, both of which it already retested and held above on Friday
3. The 14ema is about to cross above the 21ema
4. MACD is curling up from below the 0 level (the MA is)
5. RSI crossed the 50 level to the upside
6. ADX is moving up from below the 20 level
7. +DI touched -DI and reversed back to the upside--in my experience this is one of the strong signals that a bullish trend is starting/resuming, specially if combined with ADX moving up from below 20
8. The Stochastic oscillator--which has been tracking very well the moves of this stock--crossed bullish from oversold level
Phew, that was quite a lot of bullish signals so I am probably going to play the earnings by starting a medium sized position tomorrow (depending on where it opens). If I enter, my stop loss will be right below the 14/21 emas (below the .236 fib level). Very minimal risk. I am also not holding this for too long. This would be a quick swing trade for me.
If this trade pans out I am looking into riding it up to ATH and reassess my position depending on what happens there.
As I always say, none of this needs to happen but the chart has too many indicators that a bullish move will happen.
Safe trades!
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If you get anything out of this TA, please like the chart so it moves up and others can benefit from my work. A simple click on the like button goes a long ways.
Follow for more:
I have an outstanding winning rate (check my other charts). If you want the best entry/exits just follow me, you won't regret. Thanks a lot!
***The ideas shared here are my opinion, not financial advise to place trades. Please do your own research before buying/selling stocks***
WHY AMD LOOKS GOOD HERE?
In addition to the earnings being expected to be around 50% higher than last year, there are several indicators that corroborate a bullish scenario:
1. After falling about 13% from ATH, the price reversed on a doji candlestick which can be seen as an exhaustion of sell position and increase in buying positions
2. The price traveled all the way from below the 50ema to above the 14/21 emas, both of which it already retested and held above on Friday
3. The 14ema is about to cross above the 21ema
4. MACD is curling up from below the 0 level (the MA is)
5. RSI crossed the 50 level to the upside
6. ADX is moving up from below the 20 level
7. +DI touched -DI and reversed back to the upside--in my experience this is one of the strong signals that a bullish trend is starting/resuming, specially if combined with ADX moving up from below 20
8. The Stochastic oscillator--which has been tracking very well the moves of this stock--crossed bullish from oversold level
Phew, that was quite a lot of bullish signals so I am probably going to play the earnings by starting a medium sized position tomorrow (depending on where it opens). If I enter, my stop loss will be right below the 14/21 emas (below the .236 fib level). Very minimal risk. I am also not holding this for too long. This would be a quick swing trade for me.
If this trade pans out I am looking into riding it up to ATH and reassess my position depending on what happens there.
As I always say, none of this needs to happen but the chart has too many indicators that a bullish move will happen.
Safe trades!
Share the love:
If you get anything out of this TA, please like the chart so it moves up and others can benefit from my work. A simple click on the like button goes a long ways.
Follow for more:
I have an outstanding winning rate (check my other charts). If you want the best entry/exits just follow me, you won't regret. Thanks a lot!
***The ideas shared here are my opinion, not financial advise to place trades. Please do your own research before buying/selling stocks***
Comment:
$AMD on the move!
