AMD position update. Boxes holding upHi everyone!
Today I am posting an update of my NASDAQ:AMD stock analysis and position.
I first provided my analysis on the stock mid August together with my boxes strategy tutorial. It is linked below.
Now let us see how it holds up.
Demand level of the higher box at 104 has proven to be a decend support.
We broke out of the box to the downside during a market-wide correction on Sep 20.
AND not surprisingly the price bounced off of 99 level, which is a bigger box supply zone turned into a support.
My outlook has not changed .
Still consider NASDAQ:AMD a great long-term investment.
I have added to my long position at 100.
Trade wisely and good luck!
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Disclaimer!!!
This is not financial advise.
Semiconductors
BUY $SOXS - NRPicks Jul 05The investment seeks daily investment results, before fees and expenses, of 300% of the inverse (or opposite) of the daily performance of the PHLX Semiconductor Sector Index. The fund, under normal circumstances, invests in swap agreements, futures contracts, short positions or other financial instruments that, in combination, provide inverse (opposite) or short leveraged exposure to the index equal to at least 80% of the fund's net assets (plus borrowing for investment purposes). The index measures the performance of domestic companies engaged in the design, distribution, manufacture and sale of semiconductors. The fund is non-diversified.
The Big Picture on NVDAToday, we will speak about NVDA
On this chart starting on March 2020, these are the elements we can see:
a) The price was inside an ascending channel (let's call it number 1) and also has broken that structure. Currently, we can see the price supported on that dynamic channel.
b) Another interesting element is that on the 1H chart, we can see a clear Flag Pattern. Where we have defined an activation level for the bullish view
c) The target we will be using for this situation is the Ascending channel 2 (There we expect to observe reactions)
d) The invalidation level either if the price reaches the activation level or not is below the current yellow structure (around 219.00)
That's all we have to share with you on this chart. Thanks for reading!
QCOM in Ascending Triangle $180 PT If you are looking for a 5G play QCOM is a stock you should consider.This fairly valued company trading at just under 20 PE and a 2% dividend is set to grow its business exponentially due to the roll out of 5G. QCOM is well positioned for the roll out of 5G as they manufacture the leading 5G chip called the snapdragon. Also, the infrastructure bill is a looming catalyst as it would allocate over 7b to the roll out of 5G. Given QCOM is trading in an ascending triangle I believe we will break to the upside as 72% of the time in this pattern there is a break to the upside. My price target is $180 for QCOM.
AMAT running out of steamNASDAQ:AMAT has been seriously testing its dynamic support through last weeks earnings report, but has not yet posted a full daily candle beneath. Still, that support has been functionally invalidated by 4 successive candles poking through. In my opinion, a new technical structure is therefore forming. How price action respects the MA200 and/or key supports in the 115-120 range will help define the new channel and pattern.
The largest potential drop (excluding external catalysts) could be to the 118 level, i.e. at the confluence of the MA200 and 19MAY low.
Longer term, NASDAQ:AMAT will continue to post blowout earnings, which should lead to new ATH in late 2021/early 2022. In the meantime, we may see it continuing to trade on the lower side of FMV with a weak upward trend.
TREND CONTINUATION FOR PRYSMIANPrysmian is a Italian leading company with headquarters in Milan, specialising in the production of electrical cable for use in the energy and telecom sectors and for optical fibres.
GOOD BULL TREND
A decidedly healthy and balanced bullish trend and a strong growth in the semiconductor sector suggest a continuation of the bullish trend in the medium / long term.
PRYSMIAN MID/LONG TERM OPPORTUNITY Prysmian is a leading Italian company with headquarters in Milan, specialising in the production of electrical cable for use in the energy and telecom sectors and for optical fibres.
Market that is close to breaking the highs, given the fundamentals and the sector, we can expect a continuation of the medium / long-term uptrend with a target of € 50.
Time to look at II-VIAcross the megatrends of 5G, cloud computing, autonomous vehicles, and others, the common denominator is the requirement for components made of advanced engineered materials, II-VI looks like it's positioned for strong growth. Now trading at just 15.5 times next year's earnings estimates, below the overall market and many other high-growth tech stocks, this extended months-long malaise in II-VI stock is giving investors a chance to buy a great technology company that should grow handsomely over the next decade at a very reasonable price.
II-VI is down some 35% from all-time highs earlier this year looks oversold on the the daily and has shown solid support at $59 many times since November 2020. Plus there's 14 buys and 3 holds with a average PT of $80.
NVDA In Danger??Today I contemplated closing 75% of my long in NVDA as it is well in profit and I have much leeway right now to walk away and let a small amount ride. The reason for this is because NVDA has broken both a key upward sloping trendline as well as the .786 Fibonacci level on the daily and 4 hour time frames.
This does not have to be the end of the road for NVDA but it is not a bullish sign either to say the least.
It does appear, however, that Nvidia could be in for some short to midterm consolidation before regaining the needed momentum to break back above all time highs.
A few things that are good from a bulllish perspective is that a week ago we broke out of downward sloping resistance and managed to break and close fully above the .786 Fibonacci level not to mention we set higher highs in the process of doing that.
For this reason I am remaining in my long.. but there is a further issue. The issue is that we are in the process of putting in a macro lower high and this could be very bearish for the asset if it does not find bids this week and at the very least break back above $203. If not, a retest of the $198 price level could be very likely.
This entire range from $198 all the way down to $194 could be a great re-entry area for a long as there is much bullish confluence in this region which should provide for ample support.
It is this reason that I am remaining in my long. I will not be looking to add to my position should the price come down to the aforementioned price levels.. I will, however, remain patient by waiting and seeing if any bids come in at the green zone I have showing on the chart. If this green zone does not hold, I will be 75% out of the trade should we break and close a daily candle below the 0.5 fib level at $194.
Tomorrow's open and close on the daily chart could be telling. Keep in mind though, that the week has just started and NVDA has plenty of time to make up for the major, yet small ground it has given up to start the trading week.
NVDA [Update]So far on NVDA we are still up nicely on our original idea and as we predicted NVDA is now putting all of our fib levels to the litmus test as it finds itself right in the middle zone of the entire fib retracement.
I expected the .383 to be properly tested before liftoff and so far it is holding up.
If it can continue to hold, NVDA will find itself breaking out once more as a bullish falling wedge is now being painted on the 4 hour timeframe.
One could debate if this is valid or not due to the breakdown out of its lower trendline, and that is fine. Because what we are most interested in is the upper trendline of the falling wedge as it appears to be serving as resistance on the price.
This is not something to ignore as supply lines like this can often be a warning of an impending bearish downtrend if price continues to fail when touching it.
So for this reason I am moving my stop losses up to around $189.79. The reason for this is because of not only the bearish trendline over our head, but because a breaking to the downside of the .382 fib level with a confirming candle on the 4 hour could mean a retest of much deeper levels at or around the bottom of the falling wedge or our .236 fibonacci level. So closing my position in profit and buying right back in at a discount is what I will be looking for in the near future.
In the meantime, however, I am still in my long but I am monitoring closely. NVDA will need to get moving and break the red trendline but ultimately put in a higher high in price by breaking the .618 fibonacci level over our head but that discussion will be kept reserve for a future post or update.
$AMD my team is up 35.8%*This is not financial advice, so trade at your own risks*
*My team digs deep and finds stocks that are expected to perform well based off multiple confluences*
*Experienced traders understand the uphill battle in timing the market, so instead my team focuses mainly on risk management*
Recap: Steadily increasing semiconductor demand due to current shortage will leave $AMD with fat profits during the next few market quarters.
My team entered $AMD on 6/10/21 at $81.10 per share.
Today we're exiting $AMD at $110.15 per share. My team is up a staggering 35.8% on this trade.
Congrats to those who took this trade with us.
ORIGINAL ENTRY: $81.10
CLOSING TRADE AT: $110.15
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$QCOM in Ascending Triangle $165 PT The global chip shortage is still nowhere near over, making semiconductor companies very attractive here. QCOM is my top pick of the sector as they dont only benefit from the chip shortage they also benefit greatly from the roll out of 5G. The roll out of 5G will be sped up by US investment via the infrastructure bill which allocates $65b to broadband infrastructure. QCOM’s Snapdragon 5G chip is the most cost efficient chip on the market, which should continue to be in high demand as chinese firm Huawei is still banned in the US and UK which creates market share for QCOM given Huawei used to be one of the largest 5G chip manufactures before they were banned in multiple countries. QCOM has been trading in a clear ascending triangle pattern which historically implying further upside (72.7% of the time), QCOM should be able to breakout of this pattern and move higher. Trading at 20x (FWD) PE and a 2% dividend QCOM is trading at a very fair value, with great growth prospects making it a very strong BUY for me.
$SNE looks ready to play*This is not financial advice, so trade at your own risks*
*My team digs deep and finds stocks that are expected to perform well based off multiple confluences*
*Experienced traders understand the uphill battle in timing the market, so instead my team focuses mainly on risk management*
Recap: My team entered into $SNE at 92.33 after its correction from $118 down to $90.
$SNE currently sits at just $99.59 per share.
Current price action suggests that $SNE is gearing up for its next move up.
If you want to see more, please like and follow us @SimplyShowMeTheMoney
$MU June Update *This is not financial advice, so trade at your own risks*
*My team digs deep and finds stocks that are expected to perform well based off multiple confluences*
*Experienced traders understand the uphill battle in timing the market, so instead my team focuses mainly on risk management*
Recap: My team has been analyzing $MU for the past few months. After consolidating in the $74-84 range for the past few weeks we finally believe that $MU is ready to take its leap to go past $100. Investors should expect $MU to uptrend similarly along with other semiconductor companies in the near-future due to tech rebounding.
$MU is releasing their May quarter results on 6/30/21. My team remains just as confident as before in $MU and expect stock price action to benefit from this report.
My team entered $MU on 6/14/21 at $79.36 and still plan to take profit at $104.
Entry: $79.36
Take profit: $104
Stop loss: $75
If you want to see more, please like and follow us @SimplyShowMeTheMoney