Hello everyone,
I've been covering the AMC topic on my YouTube channel for over a year now. In the meantime, I came across many people who (unfortunately) have bought in at a relatively high price. In this idea, we're looking at the effect of Dollar-Cost Averaging your position.
There are two examples here
You've bought your first 1000 Shares at $35.96 ($35960)
(1) You buy 1000 Shares at $10.39 ($10390) and end up with an average buy-in price of ~$23.80
(2) You buy 2500 Shares at $4.00 ($10000) and end up with an average buy-in price of ~$13.20
This is just an example. Of course, the numbers are individual.
This method is essential if you want to break even or close your position with some profits. This also requires capital management and some spare money.
If you're overinvested and have nothing left to lower your buy-in price, you need to stay calm & patient.
While we're looking at the weekly chart, we see three reasons in this chart for a possible trend-reversal
We could see two scenarios here
1. A retracement within the downwards trend to ~$19, followed by another sell-off and a lower low
2. A full trend change with the price moving past the $19 level and finding support here
Both scenarios require time for confirmation. For now, I'm long and I'll add some more to my position within the next days.
If you like this idea, please let me know by commenting or liking. Feel free to share your own idea in the comments as well. Also, check out the stuff below ⤵️
I've been covering the AMC topic on my YouTube channel for over a year now. In the meantime, I came across many people who (unfortunately) have bought in at a relatively high price. In this idea, we're looking at the effect of Dollar-Cost Averaging your position.
There are two examples here
You've bought your first 1000 Shares at $35.96 ($35960)
(1) You buy 1000 Shares at $10.39 ($10390) and end up with an average buy-in price of ~$23.80
(2) You buy 2500 Shares at $4.00 ($10000) and end up with an average buy-in price of ~$13.20
This is just an example. Of course, the numbers are individual.
This method is essential if you want to break even or close your position with some profits. This also requires capital management and some spare money.
If you're overinvested and have nothing left to lower your buy-in price, you need to stay calm & patient.
While we're looking at the weekly chart, we see three reasons in this chart for a possible trend-reversal
- The price found support at $9.50, which is also the key level of the bullish pennant from Jan 21 to May 21
- The Relative Strength Index (RSI) is printing a divergence. Buyers seem to be active in the market while the chart shows a lower low, mainly due to the recent fear & sell-off in the market. We've talked about the reasons in my previous ideas.
- The ADX indicates an absent trend, similar to the price action at the end of 2020. Sellers might be exhausted at this point.
We could see two scenarios here
1. A retracement within the downwards trend to ~$19, followed by another sell-off and a lower low
2. A full trend change with the price moving past the $19 level and finding support here
Both scenarios require time for confirmation. For now, I'm long and I'll add some more to my position within the next days.
If you like this idea, please let me know by commenting or liking. Feel free to share your own idea in the comments as well. Also, check out the stuff below ⤵️
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