Here are a few stocks I’ll be watching for new entries this week. I’ve gone into a bit of detail on the AMD setup; the others are more general ideas.
$AMD
Semiconductor industry is looking very bullish. The undisputed leader, NVDA, is extended and not at a great buy-point for me. AMD, on the other hand, is sitting on the launching pad. After its big move in late July, AMD retraced and consolidated around the July high (also the 50% fib level), briefly dipped lower (to exactly the 61.8% fib level) before recovering quickly to break its downtrend line and regain both the July high and 50% level. After consolidating there for severla days, Friday’s strong move confirmed a new uptrend by locking in Thursday’s higher low and establishing a new higher high. AMD closed the week right under the prior week’s high, which is a strong pivot. Friday’s intraday action was very strong as well.
Paul often says you can tell a lot about a stock’s momentum by how price acts in relation to wide-range candles. If the market opens strong tomorrow, I expect AMD to stay above Friday’s HB of 109.79.
$AMZN
After a nice 2u week, AMZN has regained last month’s low. If it can break through the consolidation to the left, it could have a powerful move. Targeting last month’s HB at 3540. There is no strong trend here to lean on, so I’ll keep my risk small.
$LOW
After making new highs off earnings earlier this month, LOW consolidated nicely above July’s high while the 8-day SMA caught up. That convergence is occurring as natural disasters in the west and northeast are likely to increase demand for LOW’s products and services. ATH is at 215.22.
The Banks
Interest rates continue to be favorable for the banks. The big banks, in particular, are doing great. $GS and $MS lead the pack with nearly identical charts, both making fresh ATHs on Thursday and finishing the week with wide-range, inside days. They’re a bit above their 8-day SMAs now, but they’ve stayed tight to their 8-hour bands, and the fresh pivot highs should provide energy for more upside.
