Dip-Buy on Volatility. Fibonacci Exits
This is an update to the previous post describing $AMD's consolidation for the past 3 trading days.
Extreme upper and lower bounds are $3.85 & $3.35, respectively. Marked in green dashed "lane" lines. We can expect price to be in this range unless a significant catalyst occurs.
Describing the chart:
Since we are playing a volatility metrics strategy, I removed the EMAs at they were no longer relevant to this short term play. We have 4 key indicators, Volume, VWAP, Bollinger Bands and Stochy/RSI. The SQZMOM is just for visual fun; but nonetheless can be useful for show explosive movement or short coverings, giving false positive momentum. New trend-line consolidation wedge is drawn over the previous ones on new longer resistance and supports to still show consolidation target of $ 3.74.& $3.75. Remember this price, it is important later. A heavy black ascending triangle is super-imposed to allow us to question why it did not break resistance. This is clear and prevalent multi top. A slight bump signaled potential but shortly died there after. Ascending Triangle Pattern: is typically supposed to break north if resistance cracks. Perhaps it is misidentified and it is just a multi-top and not a Ascending Triangle.
Dashed Red: Resistance @ $3.74/5
Dashed Blue: Tier 1 Support @ $3.60
Dashed Blue: Tier 2 Support @ $3.50
The important price: $3.74/5
The close at $3.61 is important today, because it tests the first line of support, opening opportunity for Tier 1 dip-buy. I committed 400x shares. Exit strategy on this lot is risk reward 2.21, stop loss at $3.45. Depending on Pre-market and open, exit strategy for gains are laid out by Fibonacci Re-tracement. Target goal is to retrace the Fibonacci's 61.80% and test $3.75 again for breakout, exit if fails or sentiment fails earlier. However, if the adverse were to occur, an another unique opportunity opens to double position size at Tier 2 support level. It's retracement, means selling lot 1 breaks-even and selling the new lot 2, netting roughly 0.15c gain per share. Holding out longer... well... we will see if it shoots the moon or eats more dirt beyond Tier 2.
It is also important to take notice of the indicators. Stochy/RSI shows oversold. Buying oversold means quick execution, driving price action into favorable territory. It appears to trade below the lower band of Bollinger before close, indicating sell side pressure. Volume is required at open to afternoon to make quick action. It has been for the most part consistent.
Extreme upper and lower bounds are $3.85 & $3.35, respectively. Marked in green dashed "lane" lines. We can expect price to be in this range unless a significant catalyst occurs.
Describing the chart:
Since we are playing a volatility metrics strategy, I removed the EMAs at they were no longer relevant to this short term play. We have 4 key indicators, Volume, VWAP, Bollinger Bands and Stochy/RSI. The SQZMOM is just for visual fun; but nonetheless can be useful for show explosive movement or short coverings, giving false positive momentum. New trend-line consolidation wedge is drawn over the previous ones on new longer resistance and supports to still show consolidation target of $ 3.74.& $3.75. Remember this price, it is important later. A heavy black ascending triangle is super-imposed to allow us to question why it did not break resistance. This is clear and prevalent multi top. A slight bump signaled potential but shortly died there after. Ascending Triangle Pattern: is typically supposed to break north if resistance cracks. Perhaps it is misidentified and it is just a multi-top and not a Ascending Triangle.
Dashed Red: Resistance @ $3.74/5
Dashed Blue: Tier 1 Support @ $3.60
Dashed Blue: Tier 2 Support @ $3.50
The important price: $3.74/5
The close at $3.61 is important today, because it tests the first line of support, opening opportunity for Tier 1 dip-buy. I committed 400x shares. Exit strategy on this lot is risk reward 2.21, stop loss at $3.45. Depending on Pre-market and open, exit strategy for gains are laid out by Fibonacci Re-tracement. Target goal is to retrace the Fibonacci's 61.80% and test $3.75 again for breakout, exit if fails or sentiment fails earlier. However, if the adverse were to occur, an another unique opportunity opens to double position size at Tier 2 support level. It's retracement, means selling lot 1 breaks-even and selling the new lot 2, netting roughly 0.15c gain per share. Holding out longer... well... we will see if it shoots the moon or eats more dirt beyond Tier 2.
It is also important to take notice of the indicators. Stochy/RSI shows oversold. Buying oversold means quick execution, driving price action into favorable territory. It appears to trade below the lower band of Bollinger before close, indicating sell side pressure. Volume is required at open to afternoon to make quick action. It has been for the most part consistent.
Trade ist aktiv:
400x Shares @ $3.60
Pre-market is currently tracking $3.72/3. Chance to test support.
Pre-market is currently tracking $3.72/3. Chance to test support.
Trade ist aktiv:
400x Shares @ $3.51
Trade wurde manuell geschlossen:
400x Share @ 3.65
Trade geschlossen: Ziel wurde erreicht:
400x Shares @ $3.65
Kommentar:
Huge resistance at $3.65 today. Did not want to hold longer than projected time frame. Exited with gain of 0.05 cents/share on 1st lot and 0.14 cents/share on 2nd lot.
Kommentar:
Wow! Consolidated at tested $3.74 resistance as projected! Had I held out this would have been amazing, but nonetheless gains are gains and I cannot be greedy.
