by Shane Ormond
On May 21, 2020
Target reported that online sales on an average day in April exceeded last year’s Cyber-Monday sale, because if you’re not going to buy a Cuisinart Perfectemp 14 Cup Programmable Coffee Maker at the end of the world, when are you gunna buy one?
Yesterday, we looked at a Keltner Channel chart of Morgan Stanley and noted that it was on a pullback from being overbought.
Today’s chart is for Cirrus Logic, Inc (NYSE: CRUS).
Cirrus Logic, Inc., a fabless semiconductor company, develops, manufactures, and markets analog and mixed-signal integrated circuits (ICs) in the United States and internationally.
The Daily Price Chart below shows that CRUS has been making a series of 52-Week Highs since August.
We know that a stock doesn’t hit a new 52-Week High unless it is in a very powerful up trend.
So we watch for the inevitable price retracements along the way…
As you can see, CRUS experienced periodic price pullbacks during its strong advance since January.
Traders can get a lower risk entry point after a 3 to 5% price retracement as the stock normally resumes its price up trend after such retracements.
Maximizing Our Profit Potential
On August 27th, CRUS stock pulled back after a brief period of being overbought. This retracement offered a great buying opportunity for investors.
If you had purchased CRUS shares on this date, you would currently be up 64.05% on the stock.
A great return for a less-than-five-month hold of a stock!
But…if you had purchased the right option contract on August 27th, you would be up 443.07% by now!
That’s after only one trade.
That is the power of options — and exactly the kind of opportunities we seek and find in our premium trading service, PowerTrend Options. Up to twice a week, subscribers get trades in their inbox just like this one – it’s how we’ve curated a 100% successful open portfolio.
We’ll be sure to continue following Cirrus Logic, Inc. as it climbs to new heights, and watching for price retracements.
Editor, Chart Of The Day