$ARM is flexing its muscle – June 13, 2024
Hey everybody, it’s Scott McGregor at Scott Trades on Twitter with StockMarketMentor.com and your Chart of the Day. I want to take a look at Arm Holdings ( NASDAQ: ARM ).
Now, Arm ( NASDAQ: ARM ) is really a master class in launching an IPO because Arm Holdings ( NASDAQ: ARM ) is a semiconductor company and they launched just before the big AI boom started.
If you look at NVIDIA ( NASDAQ: NVDA ), NVIDIA ( NASDAQ: NVDA ) was just going sideways here for September, October, November, and December and not really doing much of anything. Then in early January of this year, it broke above all the key moving averages, did it on massive volume, and has been on a monster run.
Arm ( NASDAQ: ARM ) has been following its momentum as well. Here, in January, it already broke above its IPO launch high, its enthusiasm high, as Dan Fitzpatrick calls it, gave you some consolidation, had a monster earnings report, and just blasted up to 164.00.
This has been a super successful IPO launch and follow-through, which we really haven’t seen for a long time. If you think of a lot of IPO stocks, I’m thinking of stocks like Coinbase ( NASDAQ: COIN ). You remember Coinbase’s ( NASDAQ: COIN ) launch, up here, pop, drop. LYFT ( NASDAQ: LYFT ). Remember LYFT ( NASDAQ: LYFT ) was just disgusting, it hasn’t even gotten close to its IPO high.
Arm Holdings ( NASDAQ: ARM ) is really flexing its muscle as one of the strongest IPO stocks in recent history, it’s one of the strongest IPO stocks in the market right now. And while it is extended above all these key moving averages. I think it makes sense to have an alert up here at around 164.00 and look for a potential blue sky breakout above that level, coming on higher than average volume.
This will be a definite momentum trade, so you are going to want to trade things with a tight leash. But keep an eye on that 164.00 level because stocks that make new highs, as we know, tend to keep making them. And if the hype continues in semiconductors and AI stocks, I think Arm Holdings ( NASDAQ: ARM ) is going to be a real winner.
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