Let a smile be your Ambarella (AMBA) (December 17, 2014)
AMBA
I want to look at Ambarella ( NASDAQ:AMBA) here because this is at a pretty good buy point, a low risk buy point and you can see why. The 50-day moving average, the last time it was tested the stock bounced. This time it’s being tested, well there’s the stock, it’s not really bouncing yet; yes it’s up $1.00 today but I’m talking about just a well-defined support line.
So you’re looking at Ambarella ( NASDAQ:AMBA), it’s a nice uptrending stock, you want to be there, they make the stuff that’s in the “GoPro” cameras and all that. Really, they’re really going to be a media company by the way? Is that really what the future is for a camera company?
Anyway, I’m editorializing; the bottom line is a stock that could, probably will continue on higher. You can take a shot at it by just keeping a fairly tight stop; keep a 5 maybe 6 percent stop, I don’t think you even need to go that much. You’re buying this stock; you’re buying a nice uptrending stock on the dip, looking for this.
That’s how you want to take an entry in a stock like this. The market’s really, really volatile, what goes up today and tomorrow is going to come crashing down on Friday, etcetera, etcetera. But here’s a stock that’s been trading pretty orderly and it’s come back down to give you a pretty good buy point right here.
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