Set to Swing High - Trading AMD
Plus, another energy sector trade with OXY poised for another move up.
June is starting off holding above the anchored volume weighted average price (VWAP) from the May 12th gap up for SPY. A positive sign for the bulls.
New all-time highs are within reach. The dips are being bought up. We are getting higher lows. All bullish.
Now all we need to see is the daily candles for SPY busting through 595.54 to begin the march towards 613 again.
The 50-day simple moving average (SMA) has curled up and the 200-day SMA has turned into support for the daily candles. More bullishness.
And the relative strength index (RSI) is above 50 with room to run higher. That’s another point for the bull camp.
The chart is making it simple for traders. Bulls want SPY to break above 595.54 with force, setting up another rally. If we get a rejection, watch the 200-day SMA for support.
If you are in the bear camp, you want both the 200-day and 50-day SMAs to be broken, clearing the way for a path back to 515.
For now, the trend is still up and to the right, and that is how I am trading until lower lows are put in.
I like the simplicity here and found two favorite tickers with similar basic set ups. AMD and OXY are today’s trade ideas with swings through July.
The semiconductor names are in a very interesting spot. This chart of SMH shows the quick climb back into the prior trading range, holding above the 200-day SMA.
Will SMH make it back to the top of the channel, touching 262? Or will it fail to hold 239 and find lower levels?
While there are multiple semiconductor stocks that I like to consider trading, the chart for AMD stands out the most.
I also continue to take notice of the energy sector and the options contracts that are offering great opportunities as shares swing low. Especially for OXY.
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