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.

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