Let’s follow up on $RMBS- May 16, 2023
This is Scott with your Chart of the Day. I want to follow up on Rambus ( NASDAQ: RMBS ). This is a stock that we talked about last week for the Chart of the Day, and this trade is working out great, it is actually my biggest position right now.
Here’s what I saw last week, and here’s what I am doing with it now. As I mentioned last week, I saw this clear level of resistance. A downward sloping trendline, resistance here, here, here, here. It broke down, got under the 50-day, and reported earnings. The market liked it and pushed it right back above the 50-day moving average.
It retested this move, you can see how it dropped under the 50-day. The buyers stepped up and then they had to reach higher to grab those shares that they wanted. So this stock is now in motion and made an all-time high today, and did it on a nice pickup in volume.
So what am I doing with this trade now? Now I am just trying to let it work. My job now that the trend is in motion, is just to try and hang on as long as possible. So I have moved a few stops up to break even, and I even put a stop, just near the end of the day today, right under the day’s intraday low.
Ideally, this stock can hold above this level and continue higher. Or at least consolidate this move, let these moving averages catch up to price, and then take off again and make another new all-time high. So at this point in the trade, in my opinion, you have got to ratchet up those stops. It should not be a loss at this point, especially if you bought this last week when we talked about it for the Chart of the Day.
That’s what I am doing with Rambus ( NASDAQ: RMBS ). I’m glad it’s working for me, maybe it’s working for you too.
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