Here’s a chart to consider for tomorrow. AMD is a stock I’m sure most of you have heard of. We’ve bought and sold this one a few times in the past. They are actually a pretty good company, but in a very competitive industry that has seen its prices for components slashed drastically over the past few years.
Since the beginning of August, this stock has risen over 50%. But Wednesday’s action could spell the end to that run. There is a couple of ways to play this one. With the recent selling dating back to last Friday, we could see a bounce of sorts, whether it is sustainable is up and the air. We’re going to short this one at around 6.24/share. Next thing is to pre-determine a stop-loss, which depending on your level of risk, can vary. For you risk-adverse folks, a trailing stop just above Tuesday’s highs, would be one way to trade this stock, which would be a little over 6.50/share, while those with ice in their veins may opt to use the 200-day moving average as a stop, particularly since it has been eons since it was last breached. We’ll probably aim for a price target of 5.70 but we’re not dead-set on that. Any case, whether you decide to trade in this yourself, make sure to use caution and to do your own diligence. Happy Trading!
Here’s the AMD Chart…
