No momentum? Sure.

10/26/2022

The “Fintwit” world wouldn’t stop last night after Microsoft (MSFT) and Alphabet (GOOGL) reported lackluster earnings…

Lots of calls for Armageddon and regrets of not being short at yesterday’s close.

The trouble here is that when you think you can outsmart the market, you’ll likely “outdumb” yourself…

(Source: giphy.com)

Here’s the thing- we all do it… It’s how often you do it that matters.

And, of course, market momentum.

For today, I want to look at a stock that some folks say has no gas left in the tank and lost all momentum…

I beg to differ…

This one wouldn’t stop pinging my scanners yesterday.

Check out Amyris, Inc. (AMRS):

Again, we’re looking at the daily chart.

Right now, with most charts, the cleanest look you’ll get is on this time frame and that’s being kind.

What’s more is that there aren’t many charts I’m in love with, but I’m willing to flirt with this one…

The reason this one is worth mentioning is its clear Support and Resistance levels…

Green channel. Red channel.

And while most folks who bought the top after the recent breakout are cussing out their monitors, a good number of traders are sitting patiently and waiting for the next run…

Now, look left and you’ll see where the level change occurred after moving higher.

Before, AMRS sat in the channel whereas it now sits on top.

For me, the trigger here is the 21ema (green dotted MA) which is in line with the white dotted line.

Not a buy trigger… just an alert.

With my trading style, especially in this market, a confirmation would be a level up above the neon green line.

Target? I’d set my initial SELL order close to the ~$3.80 mark.

That’s about a dollar move from here.

And if it pulls through, a thousand shares is a thousand bucks…

…You can take the family to Denny’s (DENN) with that kind of money.

On the lower chart, the Alpha Waves tool is a bit finicky on choosing a true direction… and understandably so.

The dots give evidence as to where the momentum is and, as it stands, they’re a mixture of varying shades of red and green.

However, the composite Stochastic is elbowing upward towards the zero line…

Volume is quiet, but looking at the Short Volume, you can see where that’s dropped.

If, indeed, the share price moves to the upside, don’t expect it to be a slow climb to the top of the ladder…

Stocks like this aren’t afraid of heights, but they can fall all the same.

Watch above $2.80 for confirmation. Below $2.20, pack it up.

Keep moving,

(Disclosure: I hold no position in AMRS but intend to initiate a position in the next 30 days.)

This material is not an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Any performance results discussed herein represent past performance, not a guarantee of future performance, and are not indicative of any specific investment. Due to the timing of information presented, investment performance may be adjusted after the publication of this report. There can be no assurance that the future performance of any specific investment, investment strategy, or product made reference to directly or indirectly in this communication will be profitable, equal any corresponding indicated historical performance levels or be suitable for your portfolio.

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