{"id":6548,"date":"2020-04-28T11:46:09","date_gmt":"2020-04-28T15:46:09","guid":{"rendered":"https:\/\/morpheustrading.com\/blog\/?p=6548"},"modified":"2022-04-06T15:04:57","modified_gmt":"2022-04-06T19:04:57","slug":"amd-earnings-breakout","status":"publish","type":"post","link":"https:\/\/morpheustrading.com\/blog\/amd-earnings-breakout\/","title":{"rendered":"Breakout Trade Setup: $AMD Earnings Play"},"content":{"rendered":"\n
\"\"<\/figure>\n\n\n\n

As we enter earnings season during the pandemic, we are looking for trade setups that have the combination of bullish technical patterns and solid earnings growth.<\/h1>\n\n\n\n

Advanced Micro Devices ($AMD) is a potential breakaway gap up candidate heading into earnings, which are due after the close on Tuesday, April 28. <\/strong><\/p>\n\n\n\n

A breakaway gap up<\/a> is an extremely bullish setup where the price “gaps” above the high of the recent price range, especially when the move is confirmed by heavier than average volume.<\/p>\n\n\n\n

The weekly chart of $AMD below shows the 11-week long basing pattern<\/a>. After the earnings report, an open above the base high of $59.27<\/em> would qualify as a gap up. <\/p>\n\n\n\n

An ideal gap would be around 2-5% above the base high:<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

What makes this setup so powerful is that if<\/em> $AMD breaks out to a new high in reaction to earnings, it will also correlate to a breakout to new all-time highs. <\/p>\n\n\n\n

The prior all-time high was set in 2000, with another stall just below the prior high in 2006. This can be seen on the long-term monthly chart below: <\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

If $AMD can clear the base high and hold, it will be the first time trading at a new all-time after coming out of a base.<\/p>\n\n\n\n

In turn, this could lead to explosive price action.<\/p>\n\n\n\n

Of course, this play is only valid IF the earnings reaction causes $AMD to gap above the base high<\/strong> shown in the first chart above.<\/p>\n\n\n\n

Subscribe now<\/em><\/a><\/strong> to The Wagner Daily to receive the best nightly stock and ETF picks for your swing trading side hustle and long-term growth.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

As we enter earnings season during the pandemic, we are looking for trade setups that have the combination of bullish technical patterns and solid earnings growth. Advanced Micro Devices ($AMD) is a potential breakaway gap up candidate heading into earnings, which are due after the close on Tuesday, April 28. A breakaway gap up is […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_links_to":"","_links_to_target":""},"categories":[3],"tags":[],"class_list":["post-6548","post","type-post","status-publish","format-standard","hentry","category-stock-trading-strategy"],"_links":{"self":[{"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/posts\/6548","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/comments?post=6548"}],"version-history":[{"count":6,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/posts\/6548\/revisions"}],"predecessor-version":[{"id":6570,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/posts\/6548\/revisions\/6570"}],"wp:attachment":[{"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/media?parent=6548"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/categories?post=6548"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/morpheustrading.com\/blog\/wp-json\/wp\/v2\/tags?post=6548"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}