Merchants, Completely happy Sunday!
I sincerely hope that you’ve all had a calming, peaceable weekend. As I discussed final week within the weblog and video, I will likely be touring till the top of October, so the posts will likely be shorter and barely totally different till I return from my travels.
However don’t fear, I received’t depart you hanging! I might nonetheless prefer to introduce contemporary concepts both every week or overview the concepts from the earlier week in order that whereas I’m touring, you might be nonetheless in a position to advance your progress and additional strengthen your buying and selling profession.
With that in thoughts, merchants, I need to overview the concepts this week and supply updates on what was mentioned final week.
Many concepts labored out brilliantly from final week’s watchlist and extra commerce concepts I supplied within the weekly video posted on YouTube on Monday.
Breakout Triggered in Superior Micro Gadgets (NASDAQ: AMD)
After a number of months of consolidation, AMD broke out on Friday with elevated quantity. Final week, I mentioned how I used to be seeking to get lengthy if the inventory might break above the consolidation resistance AND maintain above.
The inventory broke above the resistance, which had lowered to $105, and closed close to the day’s excessive. If you need a refresher on the thought, I urge you to learn final week’s put up to grasp my authentic plan and ideas.
*Please observe that the costs and different statistics on this web page are hypothetical, and don’t replicate the affect, if any, of sure market components akin to liquidity, slippage and commissions.
Because the inventory broke out on Friday and efficiently held over resistance, additional validated by a powerful shut, the commerce seems to be on.
Going ahead, $104 is an affordable cease loss space, as I might not need to see the inventory fail and re-enter the consolidation – that might sign a false breakout.
I wish to see the inventory pull again to $106ish and make a better low, indicating that an uptrend has been established and consumers are stepping greater.
The goal for the place stays the identical, as talked about final week: $120.
Final Week’s Brief Thought in Novo Built-in Sciences (NASDAQ: NVOS)
Generally, an concept is spot on, which was the case with NVOS. The plan laid out final week materialized completely. No matter whether or not you had been on this commerce or not, it is a wonderful alternative to overview the motion and additional perceive my considering.
For the unique plan, please check with final week’s watchlist, the place you will note my plan and thought course of.
Particularly, I needed the inventory to push again into the $0.40 – $0.50 vary of provide and CONFIRM a decrease excessive on the hourly timeframe versus the excessive set on 9/13.
On Thursday, the inventory briefly broke above $0.50 and instantly failed, thereby confirming a decrease excessive and stuff on a better timeframe – that was the affirmation and sign to get quick, risking versus the excessive of the day.
*Please observe that the costs and different statistics on this web page are hypothetical, and don’t replicate the affect, if any, of sure market components akin to liquidity, slippage and commissions.
As I discussed final week, as soon as the decrease excessive was confirmed, it might commerce to my targets inside two days. On Friday, the inventory closed close to $0.30.
This can be a textbook instance of a decrease excessive, bottom short-swing alternative in a essentially flawed inventory.
For these fascinated by setups like this, please examine additional the setup, traits, and fundamentals behind the transfer and inventory.
Final Week’s Brief Thought in FEMY: Stable Instance of Bottom Brief Swing
Lastly, I need to briefly define the change of character that acquired me to go quick FEMY.
Throughout the weekly watchlist video from final week, I mentioned how I needed to see the inventory exhaust over $4 and squeeze out cussed shorts holding this, then a reversal and a transparent shift in momentum to get quick.
*Please observe that the costs and different statistics on this web page are hypothetical, and don’t replicate the affect, if any, of sure market components akin to liquidity, slippage and commissions.
On 10/2, that’s the setup that provided itself. The inventory squeezed off the open on abnormally giant quantity, signaling to me that cussed shorts had been being squeezed out of their positions and late-to-the-party longs had been chasing the inventory greater.
This blow-off transfer to the upside after the inventory was already up considerably from below $1 was a transparent exhaustion transfer that signaled the top of the entrance facet.
