The world was gripped with fear as a banking crisis emerged in the US and Switzerland.
Global stocks retreated, and stocks in the financial sector crashed as expected.
Amidst the chaos and drama, there’s an industry in the technology sector which has been rising strongly: semiconductor.
But before we proceed, I’d like to share with you that there’s an entry to DICK’S Sporting Goods last week.
Based on The Arts of Explosive Profits strategy, you’ll still be in the trade. It’s a good idea to be patient and allow your stop loss and take profit to do their job.
All right! Let’s jump straight into the swing trading opportunity that I see in the semiconductor industry: Advanced Micro Devices.
Performance Of US Stock Market vs Advanced Micro Devices (AMD)
What can you tell from the chart of the S&P 500 futures above?
The S&P 500 futures has been on a volatile uptrend since mid-Oct 2022.
Zooming in, you can see that the past week has been bullish.
Optimism re-entered the market after the Fed and the group of government agencies decided to protect the deposits in the failed banks.
Knowing the context of the market is important because this will provide you with a benchmark to compare the stock you’ve shortlisted against.
When choosing a stock to buy for a swing trade, you want to select 1 that’s stronger than the S&P 500 futures (aka the overall US stock market).
Doing so will increase your chances of success.
So, is the performance of Advanced Micro Devices’ shares stronger than the S&P 500 futures?
The shares of Advanced Micro Devices have been in an uptrend since mid-Oct 2022 too. Yet there’s a difference.
Can you tell that its run ups have been steeper?
Thus, it’s safe to conclude that the performance of Advanced Micro Devices’ shares is indeed stronger than the overall US stock market.
How Explosive Is Advanced Micro Devices (AMD)?
Knowing that the shares of Advanced Micro Devices are outperforming the overall US stock market, it’s time to measure its up movement to determine whether it’s worth your time.
Let’s count and measure each up movement.
In the past 7 months alone, there have been 13 huge up moves. They range between 7% and 41.1%!
For a stock with a market capitalization of more than $157b, these up moves are remarkable in nature.
Say no more!
Is it time to buy shares of Advanced Micro Devices for a swing trade?
Let’s have a look at its key price levels to identify potential buying areas.
Key Price Levels
On the chart above, I’ve plotted the immediate key price levels of Advanced Micro Devices.
Yes, these lines are also known as support and resistance zones.
You can see an immediate resistance zone at around $101 and an immediate support zone at around $92.
This means that if the share price of Advanced Micro Devices were to continue soaring, it could reach $101 before experiencing some form of selling pressure.
If its share price falls, it could experience some form of buying pressure at around $92.
Because the share price of Advanced Micro Devices has flown vertically last week, I think that a pullback could be near.
Hence, I think that it’s more likely for its share price to drop in the coming week and I’ll be watching the $92 price region eagerly.
The Strategy You Can Use To Swing Trade Advanced Micro Devices (AMD)
After comparing the performance of AMD with the broader US stock market, determining whether AMD has experienced explosive up moves, and identifying its key price levels, it’s time to talk strategy.
To stay in business, you must know your entry, profit taking, and stop loss levels in every trading strategy. Yes, trading is a business, which means that your strategy must be well thought out.
Using The Art of Explosive Profits (AEP) framework, I’d like to see AMD pullback to around $92 before considering an entry for a swing trade.
As the name implies, you’ll be looking to consistently catch an explosive move in a short period of time.
Instead of relying on news and hearsay, the AEP course will teach you how to screen stocks for swing trading like AMD.
You’ll also learn how to read charts and identify stocks that are about to make a big move.
Finally, you’ll learn how to identify the optimal entry, stop loss, and take profit levels to capitalize on these explosive moves (in a safe manner, of course)!
Can you apply the AEP framework to provide you with a side income while working full time?
Yes, you can!
Come, have a look at the AEP framework and incorporate this explosive trading strategy to your arsenal to capitalize on more swing trading opportunities.
Why Is Swing Trading AMD Worth It?
Although the S&P 500 futures has been on an uptrend since Oct 2022, it has been a rough and volatile one.
The share price of Advanced Micro Devices started climbing in Oct 2022 too, but they’ve been climbing faster than the S&P 500 futures!
In addition, its share price has experienced 13 explosive up moves in just the past 7 months alone, qualifying this stock as an excellent candidate for a swing trade.
We’ve also identified its key price levels to determine a price area to watch before entering.
While we wait for a pullback, please keep in mind that I’m not a financial advisor, so please treat this as edutainment and conduct your own research.
Lastly, all photos and images are from unsplash.com, pexels.com, pixabay.com, and tradingview.com.
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