Case Study: AMD
AMD delivered a huge rally from $2 to $15 in 2016. Please click on the tweet to read the complete article –
How AMD stock rallied 3.5x over last 18 months? https://t.co/JyVO51DWx4
— Deepak Singh (@smarket) October 4, 2017
Now when a stock rallies like this, people abandon the stock but usually such stocks offer another opportunity once they complete a Bullish base.
Bullish Base + Launch Pad
As per Science of Stock Price Action – Bullish stocks rally a lot, and then pause for fundamentals to catch up and once things fall in place and stock has formed a bullish base, it runs again.
AMD offered that opportunity earlier this year:
AMD @ 9.98 – Bullish Base BUY pic.twitter.com/jse4GPDKew
— Deepak Singh (@smarket) April 10, 2018
Here’s what has happened to the trade:
The stock is a great example of how one should look at such opportunities whenever they present itself
Disclaimer – The state of the market notes is Deepak’s perspective on the market. The column is purely for educational purpose. Nothing contained herein is a solicitation to trade or a recommendation of a specific trade. By reading this publication you agree to make no trade relying in whole or in part on the comments of the writers