Breakout of The Cup

Finally, after 1 year of postponement due to Covid 19, Tokyo Olympic 2020 was officially held from 23rd July - 8th Aug 2021. This is the first Olympic without any spectators in the stadiums but athletes from all around the world gathered here for this top level sports competition on the planet Earth. Congrats to all the winners of the medals and thank you to all the participants that play a part to make this event a success.

I wish to specially shoutout to Malaysia Badminton Men’s Double, Aaron Chia and Soh Wooi Yik in winning their first Olympic Bronze Medal!!! You guys rocks and thank you for the good game!!!

Last week we saw a lot of tech giants released their Q2 earning reports and one of the shining star is $Advanced Micro Devices (AMD.US)$ . After they delivered a magnificent Q2 earning report, its stock price rise to over $100 and hit historical high!!! This showed that the market is confident with $Advanced Micro Devices (AMD.US)$ future as they are getting more market share from $Intel (INTC.US)$ .

Here I extract a paragraph from AMD’s press release (you may click Here for full article) on 27th July 2021, 4.15pm saying that “Our business performed exceptionally well in the second quarter as revenue and operating margin doubled and profitability more than tripled year-over-year,” said AMD president and CEO Lisa Su. “We are growing significantly faster than the market with strong demand across all of our businesses. We now expect our 2021 annual revenue to grow by approximately 60 percent year-over-year driven by strong execution and increased customer preference for our leadership products.”

Now we can see $Advanced Micro Devices (AMD.US)$ has the fundamental as support, so when shall we enter? Now we can look for entry point through technical analysis.

From AMD’s chart, we can actually saw a Cup and Handle (C&H) chart pattern being built before 28th July 2021. As you can see from the chart, there is a big correction which built for around 6 months which formed the cup, then it followed by a minor correction for around 20 days to form the handle. Both resistances are around $95. On 28th July 2021, the next day after the Q2 financial report announced, it breakout and go over $100.

If you are new to AMD and missed out all the entries in front during correction, you may try the C&H breakout entry. If you are an investor who’d like to avoid QR bomb and prefer to plan your entry after QR announcement, you may also try the C&H breakout entry.

Here are the 4 principles to remember:

1: The Cup is formed.

2: The Handle is nearly or already formed.

3: The Low of the Handle must NOT LOWER than the low of the cup.

4: Good factors such as good news, good reports is a bonus.

After you enter at the breakout at around $95, it immediately convert from a RESISTANCE to a SUPPORT. This will be your main support line or it can be your Cut Loss point. When you placed your entry at this level which backup by confirmation from both Fundamental (good report) & Technical (C&H pattern + entry close to support), your risk is low. As of today, AMD stand at around $108 and you have around 14% of profit on hand which is very lucrative!!!

I hope this provide a simple guide on C&H pattern and thank you for readings!!! Wish you guys HUAT!!!

Thank you @moomoo Event for another fun contest. Xoxo

Disclaimer: All the information shared above is served solely as the purpose of education and sharing. Please be informed that the information shared is not investment advice and I do not recommend any buy/sell calls. Please consult your financial advisor prior making any investment decision.

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