Let me show you two stocks you should watch this week.
The first is NVDA.
On Friday NVDA surged up over 6% with a nice volume pop.
It’s wild, because if you look at what it did in June it had a major key reversal day when it reported earnings after having already rallied 60% in just a few weeks.
At the time I thought that could be a sign that the stock might be done, but it basically consolidated since August in a triangle formation and broke out on Friday.
That suggests that this stock has some fuel in it now to run this month.
Now here is a stock that has not made a run yet back up to its summer highs, but might.
AMD has an interesting triangle pattern and has basically consolidating now for the past three weeks with support above $12.00.
Resistance is in the $12.50-$13.00 area.
A breakout through that should generate a nice 15-20% run.
And INTC made a move up last week that suggests the other semis (of which AMD is one) might get a bid now going into this week’s Fed meeting.
Stock market bulls could buy with a stop loss below $12.00 and traders can also do an options straddle.
That way you are betting only that a big move will happen once this pattern is resolved and do not have to be correct about the direction.