Here’s your trade on C3.AI ($AI) – November 13, 2023
This is Dan with FITZ IN FIVE. I want to look at AI ( NYSE: AI ) here today, that’s C3.ai, the kind of, original artificial intelligence stock for the masses.
We had a really nice run on this going back here, you can see the kind of move this has made. And then it had a pretty significant fall from grace here, it got about 50 percent of its market cap slashed. Just over the last couple of weeks here, it started on the 2nd of November, when this thing popped up to the upside. Earnings are not for about 3 weeks or so, and so, this looks to me like it’s in a pretty good position for a swing trade.
A breakout above the 50, on volume, high volume, and then high volume the following day, not quite as high as the prior day but that is typically always what happens. These two are big volume days, this is institutional buying. And after that, as the stock pulled back, volume declined, trading volume declined.
Now, this stock, is already today, I’m doing this at 3:17 Eastern. This stock, already today, has printed about the same volume as we got on Friday, which was an options expiration Friday, weekly not monthly. But still, we are going to get a higher volume day today, unless they decide to go back and revise the scoreboard.
Here’s what my suggestion is, again, it’s for a swing trade, I’m not looking for that, though it would be nice. All I am really looking for is continued moves to the upside. You can see where the 200-day moving average has been, kind of resistance the last couple of times. But with this higher low, I like anticipating $26.00 as being a floor to this stock and you can see where it is turning around here, it’s making this kind of turn.
It the stock breaks out above here, and certainly above the 200-day moving average. I think we are going to get a really, really nice move to the upside here. NVIDIA ( NASDAQ: NVDA ) with their earnings coming out on the 21st, will probably move the stock too. It sounds weird that it would do that, but NVIDIA ( NASDAQ: NVDA ) makes the GPUs that artificial intelligence needs.
So that would be my trade on this. Even if you are taking the stock here, at 27.30, and you are keeping a stop just a little bit below 26.00, that’s about 6 percent of a risk, and that’s fine, that’s okay.
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