Were you relieved that it finally poured on Friday after 2 weeks of little to no rain?
Grass patches turned green overnight after a long-awaited downpour. More importantly, Singapore's air quality improved drastically.
It has been years since Singapore experienced haze that pushed air quality into the unhealthy range.
The US stock market also saw relief last Friday. The S&P 500 rose on the back of a 4-day drop, bringing much cheer to traders.
Will the US stock market rise from here?
I think so.
Hence, I would like to search for buying opportunities to profit from price appreciation.
After combing the market, this candidate caught my attention,
But before I share my findings, let's review last week's #PowerStocks pick:
Salesforce (CRM).
Review Of Last Week's Pick Of The Week
Salesforce (CRM) was last week's #PowerStocks pick.
It's a leader in the customer relationship management software industry, enjoying a market capitalization of over $210b.
Despite its enormous market capitalization, its shares keepbeen continually exploding higher.
After rising more than 34% in 2 weeks, the stock pulled back.
Did it reach the support area that I've identified?
Yes, it did!
Now, I cannot wait for the market to open so I can place my order and ride its next huge upmove.
Where am I looking to take profit if this trade turns out as planned?
Head over to my
Telegram Channel to find out!
Speaking of Telegram, my team and I will never ask you for your hard-earned money for "investments".
I know and understand that the allure of high returns without effort is highly attractive. It breaks my heart when I hear of people falling for impersonation scams.
To protect you from scams, please note that my team and I WILL NEVER solicit for any investment.
A list of our official communication channels can be found here.
Why Is Swing Trading Advanced Micro Devices (AMD) Worth It?
Source: amd.com
Advanced Micro Devices doesn't need much of an introduction. It's in the semiconductor business.
With a market capitalization of over $842b, Advanced Micro Devices is the world's 7th-largest semiconductor company.
Despite this large market capitalization, its shares have been explosive, rising 45 times over the past 11 months, with each move ranging from 5.2% to 63.9%.
After a 19.6% rise in 1 week, its shares began pulling back.
Right now, its shares are back at its resistance area.
Can they break out and soar from here?
What's my game plan?
Where's a favorable price area I'm watching to buy its shares at?
Performance Of US Stock Market vs Advanced Micro Devices (AMD)
The very 1st thing I want to know is the
trend of Advanced Micro Devices' shares.
Knowing the trend helps me decide whether to buy or short, because following the trend can sharply increase my chances of profitability.
Looking at the chart above, its shares are beginning to rise after a downtrend. Hence, I'd like to find an opportunity to buy its shares.
What's next?
I'll compare the performance of Advanced Micro Devices' shares against the S&P 500.
Why?
I want my hard-earned money to work hard for me. A stronger-performing stock is likely to continue delivering returns that exceed the market's. So, I'll refer to the comparison chart above again.
While the S&P 500 has risen 3.6% in the past 3 months, the shares of Advanced Micro Devices have risen 5.6%, or 1.5x more!
This outperformance is highly welcome, and I'm all ready to buy its shares for an explosive swing trade.
But, am I missing anything?
How Explosive Is Advanced Micro Devices (AMD)?
Yes, it's premature to buy the shares of Advanced Micro Devices just yet.
Because I aim to buy its shares and ride its next upmove instead of going through the ups and downs, my holding period will be approximately a week or 2. Therefore, I want its shares to have the ability to explode upwards.
Have the shares of Advanced Micro Devices been exploding upwards consistently?
Marking out the explosive upmoves for the past 11 months has left me stunned.
There are 45 explosive upmoves, and each of them measures between 5.2% and 63.9%!
This is made even more impressive when I discovered the size of Advanced Micro Devices.
Advanced Micro Devices enjoys a gigantic market capitalization of over $842b!
For the shares of a company of this size to consistently explode upwards between 5.2% and 63.9% is mind-blowing!
Additionally, I appreciate that Advanced Micro Devices enjoys an enormous market capitalization, as this provides an extra layer of security against manipulation. I don't wish to lose my hard-earned money to manipulation that could be easily prevented!
Here comes the golden question: Is it time to buy the shares of Advanced Micro Devices for an explosive swing trade?
Key Price Levels
Timing is crucial in many areas of life. This includes stock trading and investing.
Have you bought an explosive stock without checking whether the timing was right?
How did it turn out?
Chances are, you suffered significant losses and emotional distress.
Because you lost confidence and doubted yourself, you missed the next fantastic trading opportunity when it arose straight from under your nose!
That's not what I want, so I'm going to uncover the key price levels of Advanced Micro Devices' shares.
Yes, key price levels are also known as
support and resistance zones. I've also marked out its support area in the chart above.
After rising 19.6% in a week, its shares hit a resistance and pulled back.
Currently, its shares are testing its resistance area of around $517.
I anticipate that the shares of Advanced Micro Devices are likely to break out of their resistance area around $517 and rise higher.
Therefore, I'm waiting for the scenario above to play out before buying its shares to catch its next explosive upmove.
Here's a pro tip: Instead of staring at your screen, consider setting a price alert on your broker's platform to be notified so that you can spend precious time with your loved ones.
Which Instrument Should You Consider Using?
Do you ever wonder about the instrument used to trade explosive stocks?
With 3 main trading instruments available - stocks, contract-for-difference (CFD), and options, you wonder which suits you best.
Since stocks (as an instrument) is easy to understand, I shall focus on CFD and options.
Here are the main similarities and differences:
CFD works like a mirror to stocks. When a stock rises $1, its CFD rises $1.
However, due to its unique pricing mechanism, your options price doesn't rise by the same amount. In fact, depending on the market conditions, the price of your options contract may even drop!
Your CFD broker will charge you a finance fee for lending you money for your trade. However, no lending is required for options, so there is no finance charge.
Because there's a finance charge by your CFD broker, CFD is not the ideal instrument for mid to long-term trades. On the other hand, options allow you to implement different strategies across time horizons.
Both CFDs and options are leveraged instruments because they allow you to control a larger market position with a smaller amount of capital.
While CFDs do not have an expiration date, options traders must pay attention to the expiration date of their options contracts.
You must be thinking, "What's the beauty of trading options?"
Options are like smartphones. You can choose to use a smartphone for its basic or advanced functions.
And options don't have to be all about Math and dry!
It can be made easy to understand through real-life analogies.
In the same way, you can implement basic and/or highly advanced strategies depending on your level of comfort.
Options allow you to be versatile in adapting to the shifting market conditions and capturing opportunities in the process.
Are you a CFD or options trader?
I'm glad to be fluent in both.
Finally, this is for educational purposes. Please perform your due diligence.
All images are taken from pexels.com, pixabay.com, sectorspdrs.com, tradingview.com, and unsplash.com, unless otherwise mentioned.
Want To Learn How I Find Stocks Like Advanced Micro Devices?
Advanced Micro Devices is just one example.
Opportunities like this appear in the market all the time.
The difficult part isn’t knowing they exist.
It’s knowing how to spot them.
And after spotting them, knowing -
→ When does an entry actually make sense?
→ When is good to exit and take profit…
→ And when should you simply stay away?
Without a system, it’s easy to jump between stock tips, news, indicators, and opinions.
You don’t know what you should look out for…
And every trade feels like a gamble. A risk.
So if you haven’t attended my FREE Online Preview before - join the next one.
Not only will I show you how to find opportunities like Advanced Micro Devices…
I’ll also walk you through how I use a repeatable system to know when to enter and exit - instead of relying on random tips or guesses
Click the banner below to reserve your seat for the upcoming free session.
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