Trade Ideas: Long HOOD and Short AMD
Support will be found or it will be broken and we have trades for both directions.
Remember, focus on the long-term portfolio is not a bad way to prioritize when we are at depressed levels. I always advocate for buying low.
And I also really enjoy trading so of course I found multiple set ups to pick through for the coming week.
Two really stand out as being above the rest.
And yes, there is an upside trade idea included. I am talking about HOOD.
Here’s the chart.
That is the 200-day simple moving average (SMA) that was touched on Friday to close out last week and the buyers stepped in to create the lower wick on that candle.
It broke below the yellow anchored volume weighted average price (AVWAP) line which now acts like a target above. And could be resistance.
I like the potential for buyers to continue to step in as HOOD has a lot of retail support and a test of the 200-day SMA is a great spot for a bounce.
I have also outlined the bear thesis for HOOD, and have the trigger and targets set for a downside trade if that formulates.
The bias is for upside but I will let the chart tell me what to do.
I am also considering shorting AMD here. It broke below the low that was hit in October 2023 and I think any attempt to recover gets rejected at this same line.
There are plenty of targets lower to aim for and that is exactly the plan.
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