April 17-21st Trade Ideas

$AMD – Advanced Micro Devices
Recent News
Paul Darren Grasby, the Executive Vice President and Chief Sales Officer of AMD, sold 12,500 shares of the company’s stock at an average price of $94.85, netting around $1.19 million from the transaction. Despite the insider selling, AMD remains a top pick as investment firm Piper Sandler maintained an Overweight rating on the stock and increased its price target from $90 to $110.

Trade Ideas

  • AMD is approaching an important support around the $89 range and with it trending along the 200 day SMA, it would be believable to see a bounce occur from this in the coming days. 
  • On the downside, we have another important support at the $86 range, which if the trend falls through the supports, it can head towards this level.
  • On the upside, next important resistance will be around the $99-100 which will be the target if the trend bounces from the current support level.
  • AMD is expected to have earnings on 5/2 as well and may vary in the recent coming weeks in terms of higher volume and larger swings.

Shares Outstanding: 1.62B Share Float: 1.60B

$BAC – Bank of America Corporation – UPDATE
Recent News
Investors are growing increasingly concerned about Wall Street banks, as lower quarterly earnings are anticipated following last month’s regional banking crisis. This is expected to impact overall profitability, coupled with the pressure of a slowing economy. On top of this, inflation and recession concerns related to the banking crisis are also contributing to the mounting pressure. Moreover, the cost of issuing debt is rising, and uncertainties surround the potential impact of a slowdown in consumer spending on credit creation, as well as expectations for higher regulatory requirements. All of these concerns are further compounded by persistent geopolitical risks.

Trade Ideas

  • With the news in mind surrounding $BAC, as well as the overall market, it can be easy to make a case against buying $BAC, but finding an alternative strategy to short, such as with a Put Option. Although it should go without saying that there are just many unknowns and jitters within this current sector due to all of the recent negative news.
  • Earnings came out the morning of 4/18 and were better than expected. With estimations at $0.72 and actual being $0.94.
  • $BAC as of 4/18 was rejected at the $31 resistance level but is currently testing at the $30 level, it also has support from the 200 day SMA which may be a positive sign for the stock as long as the support levels continue to hold.
  • There is no question, however, that $BAC will return eventually and may be a good set-up for a long term play. DailyBubble would recommend waiting closer to earnings or even afterwards to see the results. Downside potential at this time is higher than average, it remains to be seen if this will have a larger impact than COVID, although this is doubtful.

Shares Outstanding: 8.09B Share Float: 7.98B

$BUD – Anheuser-Busch

Recent News

Anheuser-Busch is in the middle of backlash for a marketing campaign featuring a transgender actor Dylan Mulvaney promoting their Bud Light brand. The controversy caused both positive and negative reactions along political lines, with conservative commentators and consumers calling for a boycott. 

Trade Ideas

  • $BUD stock has performed well this year, currently up around 11%. However, the stock price has not risen despite reaching a high of $67 about two weeks ago. Observing the large volume seen on the chart, one may conclude that this could be selling volume.
  • Moreover, the significant amount of put volume and open interest on the option chain is another noteworthy observation, which may reinforce the belief that the stock price is likely to decline.

Shares Outstanding: 2.0B Share Float: 609.79M

$NFE – New Fortress Energy – UPDATE

Recent News

The price of West Texas Intermediate crude oil dropped 1% to $79.86 per barrel, while the global benchmark Brent crude contract saw a decline of 1% to $84.30 per barrel. Shares of New Fortress Energy (NFE) rose over 5% after Deutsche Bank initiated coverage on the stock with a buy rating and set a $60 price target. New Fortress Energy has a price target of $60.00 set for it. During Q4, the company reported an EPS of $0.87, an increase from the $0.72 in the same quarter of the previous year. Currently, the stock has a 52-week high of $63.06 and a 52-week low of $26.14. In the last trading period, New Fortress Energy’s closing price was $28.06.

Trade Ideas

  • $NFE has been on a downward tear from its high of $60.06 in the last 6 months back in August 2022, with a small resurgence in November 2022, it has recently touched down to a substantially low price of $26.57.
  • With the prolonged drop, current support is sitting right around the $27 range, however its next support sits at the $21.25 range. The next resistance levels may be seen at the $32 range and the $36 range.
  • $NFE is a part of the Energy/Utilities Sector and may be set-up, both technically and economically, to rebound to previous ATH’s. There is plenty of upside found within $NFE at current levels.
  • Traders may look into this stock as a swing trade for a few months and may find a return. However, with its continual drop, it is important to note that just back in 2019 it was a penny stock before surging to $62.90 (ATH) in the beginning of 2020. With this said, NFE has a major support line at the $20 range but has established a foothold for long term growth through its profitability. 

Shares Outstanding: 208.76M Share Float: 97.43M

$TSM – Taiwan Semiconductor Manufacturing Company

Recent News

Warren Buffett’s Berkshire Hathaway bought shares of Taiwan Semiconductor Manufacturing (TSMC) and then sold most of them shortly after, which confused industry observers as Buffett usually prides himself on long-term investments. However, in a recent interview, Buffett explained that his lieutenants bought the stock, and he decided to reverse most of that decision due to geopolitical concerns about Taiwan. This decision raised concerns among investors about the semiconductor industry.

Trade Ideas

  • There is currently a growing concern about the possibility of China invading Taiwan, which has led to speculation about a potential decline in TSM’s stock price. 
  • Given TSM’s significant presence in the semiconductor industry, this could present an opportunity for long-term investors to consider buying the stock in the future. 
  • We will continue to provide updates as we receive additional information.

Shares Outstanding: 5.19B Share Float: 4.86B



DailyBubble’s Disclaimer

This article provided by the DailyBubble team should only be considered as informational and/or entertainment by the reader. DailyBubble makes no representation to buy or sell any security or financial instrument within the article. Readers seeking investment advice should seek independent financial advice from a professional, and independently research and verify. The DailyBubble team wrote this article and may express its own opinions therein.

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