CRUSing Through 52-Week Highs since August

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.

Chart

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.

Best Regards,

Chuck Hughes
Editor, Chart Of The Day

Chuck Hughes

Written By Chuck Hughes

Before Chuck Hughes won 10 Trading Championships, he was an accomplished Air Force pilot. In fact, he credits his success as a stock and options trader to his disciplined upbringing and career. When he was deciding between a career in the Navy and a career in the Air Force, the Navy told him he’d only have a 33% chance of flying jets. The Air Force gave him 100%. He liked those odds better. 35 years ago, Chuck had a wife, a young daughter, a son on the way, and a huge mortgage to afford. He didn’t want to give up on his lifelong dream and stop flying for a major commercial airline. He knew he needed to supplement his income during the 15 days a month he wasn’t flying. So he used his experience in discipline and math, and his understanding of finance and the stock markets (which he’d always been interested in,) and opened a $4,600 trading account. He made over $460,000 in profits his first two years of trading, and he hasn’t looked back since. When he was diagnosed with Meniere’s disease 15 years later, which commonly leads to vertigo…He knew his career as a pilot wouldn’t last much longer with those odds. But he didn’t have to scurry to find another gig, or panic about how his family would eat… He’d spent the last 15 years perfecting his system and raking in cash. As an options trader, Chuck does not let his emotions get in the way of his trading strategy. He adheres to disciplined and methodical options and stock trades. Because he respects the options game so highly, and understands the true freedom that financial solvency can bring, Chuck was able to design and refine his system and win those 10 Trading Championships. Put simply, Chuck Hughes’ trading strategies work, and in all types of market conditions. They’ve worked throughout the bull, bear, and flat markets America has seen in the last 30 years. Chuck Hughes has spent that time building a reputation as one of the most trustworthy options traders in the industry. His publishing group Legacy Publishing LLC was one of the few trading groups on the planet to have correctly predicted and profited from the 2008 financial crash .As a published author 16 times over, a 10-time Trading Championship winner, and an options-trading teacher for 25 years, he’s learned to trade and teach without an ego.