Here’s your plan for Ambarella (AMBA) and GoPro (GPRO) (August 13, 2015)
I want to look at Ambarella( NASDAQ:AMBA ), we’ll also look at GoPro ( NASDAQ:GPRO ). Here’s the thing, I want you to see that this stock is again at the 50-day moving average, it’s consolidated for quite a while. I can’t sit here and say, “Oh, so it’s going to start the next leg higher.” If only charts were that easy to read, they’re truly not. This is a sideways drift, just a sideways drift that ultimately led higher. This is another sideways drift that ultimately led higher.
Where we’re in now, first of all has been a real volatile time there on volume that has started to pick up here, right up there. It started to pick up. When you see increased activity like this after a really extensive trend higher, a lot of times that can smack of a top, a lot of times it can’t. A lot of times this is a high base that just keeps going. So this is what I’m suggesting, I’m suggesting you consider the uptrend still intact.
I don’t look at this like, “Oh, it’s a double top.” No it’s not. It’s two times the stock hit 130.00 and didn’t go above it. That’s not a double top, it’s two times the stock hit 130.00 and didn’t go above it. Ultimately the stock can come up here and make a higher high. Then do you know what this would be? Two times that the stock hit 130.00 and didn’t go above it. It’s just a more volatile consolidation than we’ve seen.
What you want to do is, if you’re interested in this stock you buy some right now. You can use yesterday’s intraday low as a reference for your stop, though truly 100.00 I would say is real key support, but you could buy some stock right now and then wait for the stock to actually breakout above the 130.00 mark. What I would prefer to do, frankly, is just wait for this to breakout above the 130.00 mark.
I had said about Apple ( NASDAQ:AAPL ) a lot during this time here, that I would rather buy it at 135.00 than 125.00. The reason was because it needed to get through 135.00 to start this next leg higher, to convince me that the stock is in the next leg higher. All it’s done is convince me that this is water pouring out of a garden hose. Sorry bulls I get it, I understand what your problems are and I support you in trying to find all the help that you can for your problems as far as why Apple’s ( NASDAQ:AAPL ) not doing what you think it’s going to do.
Back to Ambarella( NASDAQ:AMBA ). As long as this stock is staying above the 50-day moving average then it’s doing what you want it to do. When it stops doing that you really need to rethink your position. GoPro ( NASDAQ:GPRO ), like it’s the Ambarella( NASDAQ:AMBA ) trade because Ambarella( NASDAQ:AMBA ) makes the guts of the cameras. This is just in sideways consolidation; this would be one of those kind of like I was saying about Apple ( NASDAQ:AAPL ) above 135.00. I would rather look and see GoPro ( NASDAQ:GPRO ) trade above 65.00 before I bought it, but that’s just me.
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