How much did I cycle in July in preparation for my cycling trip to Malacca?
I don’t know. Let me check it using my Strava app.
Do you also use gadgets and apps to help you track data and performance of your workouts?
In the past 6 years, the market size of semiconductors has exploded from $338.9b in 2016 to an estimated figure of $613.5b in 2022. That’s more than a 80% rise in market size!
Source: statista.com/statistics/266973/global-semiconductor-sales-since-1988/
You may remember, the world faced a shortage of semiconductors in 2020 due to the lockdowns implemented to curb the spread of COVID-19 and the sharp increase in demand for chips for smart cars and other internet of things (IoT).
As our lives become more intertwined with technology, the demand for semiconductors will only rise. But does this mean that the chart of Lattice Semiconductor (LSCC) is suitable for an explosive swing trade?
Let’s check it out together!
Performance Of US Stock Market vs Lattice Semiconductor
After a fabulous run 2 weeks ago, the S&P 500 futures consolidated last week; its price went sideways.
In the larger picture, the S&P 500 futures is still in a downtrend.
With heightened geopolitical tension between the US and China, we could see increased volatility in the coming week.
How did LSCC perform last week?
In contrast, LSCC rose by 6% last week, performing extremely well!
LSCC was also in a downtrend at the start of the year. Its downtrend ended in mid July 2022 and has since turned into an uptrend.
Why is knowing how to read a trend important?
You’ll want to follow price trends as that’ll sharpen your edge in the stock market.
Ok, you’ve established that LSCC is in a fresh uptrend. What’s next?
The next step is to determine if LSCC has met the criteria of having explosive up moves.
How Explosive Is LSCC?
1, 2, 3, 4, 5…
I’ve lost count of the number of explosive up moves LSCC has experienced in just 7 months.
The smallest up move measures 11.8% while its largest up move measures 25.4%! This is one of the most explosive stock I’ve covered so far.
With a market capitalization of nearly $9b, LSCC is by no means a small company. Yet it enjoys such explosive up moves, ticking this checkbox.
Now, let’s move to the next step by uncovering LSCC’s key price level.
Key Price Levels
You’ve reached the most critical part of the analysis of LSCC.
By uncovering the key price levels of LSCC, you uncover its support and resistance zones. These zones will save you from a lot of unnecessary heartache as LSCC’s support and resistance zones will show you where prices are likely to turn, preventing you from being trapped by experienced traders.
From the chart of LSCC above, you can see that its price is at its resistance zone of around $65.
There’s also a support zone at around $52.
Can the price of LSCC overcome and break through its resistance zone? Or will it turn down and head towards its support zone at $52?
Looking at its current up move, it has already risen by 13.3%.
Armed with the knowledge that the price of LSCC is at its resistance zone, I think that its price will fall in the coming days.
And this fall is likely to be shallow, possibly heading to $60 before bouncing upwards.
The Strategy You Can Use To Trade LSCC
After comparing LSCC’s performance to the broader US stock market, examining if LSCC has experienced explosive up moves, and uncovering its key price levels, it’s time to talk strategy.
In every trading strategy, you must know your entry, profit taking, and stop loss levels to stay in business. Yes, trading is a business indicating that the strategy you use must be well formulated too.
Using The Art of Explosive Profits framework (AEP for short), I’d like for the price of LSCC to pullback shallowly and bounce at about $60 before considering an entry.
As its name suggests, you’ll be looking to catch an explosive move in a short period of time consistently.
In the AEP course, you’ll be coached on how to search for strong stocks like LSCC instead of relying on news and hear-say.
You’ll also become fluent in reading charts to shortlist stocks that are about to have an explosive move.
Finally, you’ll learn how to identify the optimized entry, stop loss, and take profit level to capture these explosive moves that you’ve been waiting for (in a safe manner, of course)!
Have a look at the AEP framework and add this explosive trading strategy to your arsenal to seize more trading opportunities.
Why Is LSCC The Stock Pick Of The Week?
Source: latticesemi.com
Global demand for semiconductors is likely to continue rising in the next few years as we continue to experience a technological transformation.
In addition, the chart of LSCC shows that market participants have turned their attention to LSCC once again after dumping its shares from early 2022 till mid July 2022.
Time and time again, LSCC has shown to be extremely explosive in its up moves, despite a large market capitalization of nearly $9b. Such volatility is needed to enjoy profits on short-term swing trades.
The price of LSCC is at its resistance zone, offering you and I time to observe it in the coming days for a quick swing trade.
As I wait for the opportunity to arrive, please note that I’m no financial advisor, so I encourage you to treat this edutainment and do your own research.
Lastly, all photos and images are from unsplash.com, pexels.com, pixabay.com, and tradingview.com.
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