This Stock Just Gave You A Big Second Chance

This is one of my favorite setups.

After an explosive breakout the recent market action pulled it back to its breakout level.

Now it’s jumping from a perfect launching point.

As you can see from the chart of Advanced Micro Devices (AMD) below, it is bouncing off of its breakout out level.

https://lh3.googleusercontent.com/iLnmoUzdVXt6u866D2Qp9qamE3f7bB8XnKN5DxGotKtT8bKZ5zWo2-MeVICj3yu5uSFwF4z_aQJzmnkAj5rJxEjGZcD9eRKmRVnXY4uhKRLaYCFmy8PRh2LhLsp4xQLUyF-27kEl

If you look closely you’ll notice that the high breakout level was $30, but there was even stronger support at the $29 level. This is exactly where it stopped.

This means two things.

A close over $30 should find support at $30, and we have a great stop under $29.

The market is going to get off to a strong start on Wednesday so the trade set up looks like this.

Buy over $30.50, but not over $31. If you want more confirmation, wait for a close over $30.50.

The stop is under $29.

On Wednesday afternoon we’ll hear the Fed’s outcome of its 2-day FOMC meeting. This could create extreme volatility Wednesday into Thursday.

Trade smart,

Rick Nartarian, Chief Investment Officer
The American Investor Daily