{"id":9546,"date":"2021-11-30T12:16:32","date_gmt":"2021-11-30T17:16:32","guid":{"rendered":"https:\/\/morpheustrading.com\/blog\/?p=9546"},"modified":"2022-04-06T15:04:53","modified_gmt":"2022-04-06T19:04:53","slug":"amd-swing-trade","status":"publish","type":"post","link":"https:\/\/morpheustrading.com\/blog\/amd-swing-trade\/","title":{"rendered":"Review Time: How we Scored a +26% Gain in $AMD"},"content":{"rendered":"\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><a href=\"https:\/\/www.morpheustrading.com\/~rick\/\/charts\/2021\/AMD113021.jpeg\" target=\"_blank\" rel=\"noopener\"><img decoding=\"async\" src=\"https:\/\/www.morpheustrading.com\/~rick\/\/charts\/2021\/AMD113021.jpeg\" alt=\"\" title=\"\"><\/a><\/figure><\/div>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">TABLE OF CONTENTS<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/morpheustrading.com\/blog\/amd-swing-trade\/#Members_recently_netted_a_26_gain_buying_a_breakout_in_Advanced_Micro_Devices_AMD_Heres_a_quick_and_easy_chart_review_to_walk_you_through_the_winning_entry_and_exit_strategy\" >Members recently netted a +26% gain buying a breakout in Advanced Micro Devices ($AMD). Here&#8217;s a quick and easy chart review to walk you through the winning entry and exit strategy.<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/morpheustrading.com\/blog\/amd-swing-trade\/#The_Setup\" >The Setup<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/morpheustrading.com\/blog\/amd-swing-trade\/#Entry_Strategy\" >Entry Strategy<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/morpheustrading.com\/blog\/amd-swing-trade\/#Exit_Strategy\" >Exit Strategy<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Members_recently_netted_a_26_gain_buying_a_breakout_in_Advanced_Micro_Devices_AMD_Heres_a_quick_and_easy_chart_review_to_walk_you_through_the_winning_entry_and_exit_strategy\"><\/span>Members recently netted a +26% gain buying a breakout in Advanced Micro Devices ($AMD). Here&#8217;s a quick and easy chart review to walk you through the winning entry and exit strategy.<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"The_Setup\"><\/span>The Setup<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Advanced Micro Devices ($AMD) is a leading stock in the semiconductor sector that had a solid rally over the summer.<\/p>\n\n\n\n<p>$AMD peaked on August 4, then entered into a pullback over the next two months.<\/p>\n\n\n\n<p>After we began stalking $AMD for potential pullback entry, the stock caught our attention when it reclaimed support of its 50-day moving average on October 13.<\/p>\n\n\n\n<p>$AMD also broke out above its downtrend line from the pullback highs several days prior, which was confirmed by the buy signal on October 13.<\/p>\n\n\n\n<p>Volume also ticked higher that day, confirming the rally.<\/p>\n\n\n\n<p>Finally, the benchmark S&amp;P 500 Index was still trading below its 50-day MA when $AMD reclaimed that level&#8211;a clear sign of <em>relative strength.<\/em><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Entry_Strategy\"><\/span>Entry Strategy<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>All the above made for an ideal buy entry into $AMD on October 13&#8211;but we missed it.  <\/p>\n\n\n\n<p>If you&#8217;re new to trading, realize that missing an occasional buy signal is inevitable.<\/p>\n\n\n\n<p><em>However,<\/em> the key is to avoid chasing the price action and simply wait for a secondary, low-risk buy point to emerge.<\/p>\n\n\n\n<p>That&#8217;s what we did.<\/p>\n\n\n\n<p>On November 1, we alerted <em><strong><a href=\"https:\/\/morpheustrading.com\/services\/swing-trade-alerts\" target=\"_blank\" rel=\"noreferrer noopener\">Wagner Daily<\/a><\/strong><\/em> members that we were buying $AMD in the Morpheus Stock Portfolio.<\/p>\n\n\n\n<p>We sold $AMD for an average <strong>gain of +26%<\/strong> just a few weeks later.<\/p>\n\n\n\n<p>The daily chart below shows our entry and exit points in the $AMD trade:<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large is-resized\"><a href=\"https:\/\/www.morpheustrading.com\/~rick\/\/charts\/2021\/211124AMDBLOG.png\" target=\"_blank\" rel=\"noopener\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.morpheustrading.com\/~rick\/\/charts\/2021\/211124AMDBLOG.png\" alt=\"\" width=\"796\" height=\"515\" title=\"\"><\/a><figcaption><em>Press chart to view full-sized image<\/em><\/figcaption><\/figure><\/div>\n\n\n\n<p>As shown above, $AMD failed its initial breakout attempt to new highs in late October. <\/p>\n\n\n\n<p>This led to a short-term pullback to the rising 10-day exponential moving average (on November 1).  <\/p>\n\n\n\n<p>The price action on November 1 was ideal for buy entry, as the price opened below the prior day&#8217;s low and 10-day EMA, <em>but<\/em> reversed back above the moving average and prior day&#8217;s high.<\/p>\n\n\n\n<p>That bullish reversal pattern off 10-day EMA support triggered our buy entry in the portfolio of our <a href=\"https:\/\/morpheustrading.com\/services\/swing-trade-alerts\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>nightly stock trading report<\/strong><\/a> that day.<\/p>\n\n\n\n<p>Daily volume also increased by the November 1 close, which was a positive sign. <\/p>\n\n\n\n<p>Once we are in a trade and market conditions are strong, <strong>our typical swing trade targets a gain of 20-40% over several weeks<\/strong> (depending on whether or not the stock is a fast mover).  <\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Exit_Strategy\"><\/span><strong>Exit Strategy<\/strong> <span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>On November 17, we sold half of $AMD to lock in a +25% gain due to the stalling action near the prior high of November 9.<\/p>\n\n\n\n<p>We closed out the trade with a second sell a few days later, when the price reversed lower after a failed breakout attempt to new highs on November 22.  <\/p>\n\n\n\n<p>We sold the second half for a +27% gain, leading to an <strong>average gain of +26% on the $AMD trade.<\/strong><\/p>\n\n\n\n<p>In addition to the stalling price action, we also sold to reduce our total portfolio exposure to the semiconductor sector.<\/p>\n\n\n\n<p>We were also long both $ON and $NVDA at the time, with $NVDA being a top priority.   <\/p>\n\n\n\n<p>We locked in gains in $AMD and $ON, but continued to hold $NVDA.<\/p>\n\n\n\n<p>As long as $AMD remains above its rising 20-day EMA, it may continue to make new all-time highs.<\/p>\n\n\n\n<p>This makes Advanced Micro Devices a hold for longer-term position traders who ride clearly established trends.<\/p>\n\n\n\n<p><em><strong><a href=\"https:\/\/morpheustrading.com\/services\/swing-trade-alerts\" target=\"_blank\" rel=\"noreferrer noopener\">Get started now<\/a><\/strong> with your membership to The Wagner Daily to catch our next big winner. Includes exact entry and stop prices, along with optional swing trader chat.<\/em><\/p>\n\n\n\n<p><em>Do you also trade crypto? Check out our new&nbsp;<strong><a href=\"https:\/\/morpheustrading.com\/services\/crypto-picks\" target=\"_blank\" rel=\"noreferrer noopener\">Morpheus Crypto<\/a>&nbsp;<\/strong>service for the hottest swing trade picks in leading cryptocurrencies.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Members recently netted a +26% gain buying a breakout in Advanced Micro Devices ($AMD). Here&#8217;s a quick and easy chart review to walk you through the winning entry and exit strategy. The Setup Advanced Micro Devices ($AMD) is a leading stock in the semiconductor sector that had a solid rally over the summer. $AMD peaked [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_links_to":"","_links_to_target":""},"categories":[3],"tags":[],"class_list":["post-9546","post","type-post","status-publish","format-standard","hentry","category-stock-trading-strategy"],"_links":{"self":[{"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/posts\/9546","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/comments?post=9546"}],"version-history":[{"count":7,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/posts\/9546\/revisions"}],"predecessor-version":[{"id":9582,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/posts\/9546\/revisions\/9582"}],"wp:attachment":[{"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/media?parent=9546"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/categories?post=9546"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/tags?post=9546"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}