AMD Long Position (Naked Call)
AMD can offer a tremendous profit opportunity on the daily chart if you are patient and enter at the right time. The strategy I am using on it is buying long on any pull backs to its Fibonacci levels. These opportunities can offer 30%+ in price appreciation over a 60 day period in its current channel up from December 2018.
- AMD is currently in a nice channel up pattern and has been respecting this since about December 2018
- At market close 7-Day VWAP is trading about the 30-Day VWAP which is a positive sign of price appreciations
- Price is also trading above the 21-Day EMA which can indicate the stock is in an uptrend
- We can also see how price respect the retracement level and we just bounced of the upper trend line of the channel
- We can see a potential negative divergence on the MFI which could indicate we will go back and test the previous Fibonacci and lower trend line of the channel
- I will be looking for this scenario to play out in the next couple weeks or so.
- I will post any updates as they develop
Yours in Mastery,
Khalil
