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HomeTrading StrategiesAmerican Superconductor : Chart Evaluation

American Superconductor : Chart Evaluation


Chart of the Week: American Superconductor

It’s time for our chart of the week. So let’s go forward and check out this latest title that I’ve been following right here and have been making some name performs on it. It’s referred to as American Superconductor; AMSC is the image.

Whereas numerous consideration has been drawn to NVIDIA, AMD, Tremendous Micro, and a few of these different names, a little bit firm like this – American Superconductor – actually climbs from under the radar and actually involves the scene and has actually produced some nice returns for shareholders. And you’ll see from again in November, early November, the inventory was about $6 or $7. It’s now $20. In order that’s sporting a greater than 200% acquire.

It simply closed above resistance

However what actually caught my eye on this inventory final week really was closing above this resistance line, which had been the highs from the early a part of March. It closed above there and truly got here again and checked it, went above there for a few days – about $16 – got here again and checked it, and it was nice – it didn’t shut under there.

After which there’s three days right here – we had earnings final week, Friday, after which yesterday on June 3 – the inventory surged increased even when the markets had been down. In order that’s actually nice relative energy. And you’ll see the relative energy up right here within the prime is fairly overbought proper now. And I do know lots of people would say, “Properly Bob, that’s type of harmful to be shopping for in an overbought situation.”

Properly keep in mind: Overbought will not be a purpose to promote identical to oversold will not be a purpose to purchase. In case you’re a momentum participant like I’m, you take note of these items, and also you watch the momentum go up for these explicit shares.

Transferring increased on good quantity

So we had good quantity over right here. And once more, what I actually preferred about this inventory is the truth that it ran up properly on good quantity, making increased highs and better lows, which is our textbook sample for an uptrend. Cash movement is robust and we do have MACD on a purchase sign right here.

How far is that this inventory going to go? I don’t know. Trim and path as you progress alongside for those who’re holding this title.

I’ve some calls once more – I’m out to July and August and so forth on a few of these calls right here. I’ve already booked numerous income on this factor. So I virtually have a free commerce working.

I suppose if we make a transfer up in direction of $24-25 that may most likely be good. I believe it’s received some potential to stand up there.

In order that’s American Superconductor.

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