XLNX – Xilinx Trading Journal with VantagePoint

XLNX – Xilinx Trading Journal with VantagePoint

VantagePoint Trading Software is a forecasting tool that uses both end of day data and artificial intelligence. This provides traders a forecast of market movement. These forecasts are 1-3 days in advance and help traders improve their timing on making trades and maximizing profit potential. The software forecasts market movement for stocks, futures, Forex and ETFs, and Cryptocurrencies. Xilinx, XLNX stock, is in focus today…

This journal entry looks at the recent market movements of Xilinx NASDAQ: XLNX

VantagePoint Trading Journal XLNX Stock

Senators Susan Collins of Maine and Mike Lee of Utah said late Monday that they would vote for the Republican-led tax overhaul Tuesday. Collins and Lee, two of the last remaining undecided Republican senators, had been the key to securing the bill’s passage. This monumental legislation could trigger a positive reaction from the markets.

With all signs pointing up, we can use the artificial intelligence forecasting software VantagePoint to analyze individual stocks and broad indexes like the S&P, Dow, and the Russell. We’ll look at XLNX this week. Here’s the chart:

XLNX Stock Forecast

The VantagePoint platform recently indicated a potential downside breakout in XLNX could be forming due to a bearish crossover on Wednesday, 12/15/17.

Using the predictive indicators embedded within the VantagePoint and its predictive AI technology, we will point out two significant things. We have a bullish crossover indicated by the blue predictive indicator line crossing above the black, simple 10-day moving average on 12/15/17. We can combine that with the VantagePoint propriety neural index indicator moving from the zero (o) to the one (1) position. This indicator measures strength and weakness for a 48-hour period. The move to the one (1) position further makes the case for a potential bullish scenario. That’s why I am willing to entertain a setup to the upside.

Strategy Discussion

If one were a straight stock trader, buying XLNX in the $69.50 area could prove to be profitable. You would be anticipating a continuing move to the upside. It’s also a conservative way to enter XLNX without the limitation of time associated with other strategies. Another good practice would be placing a sell-stop order in the $68.00 area to mitigate potential losses.

For more active traders with a shorter investment time horizon, you can consider a setup utilizing options. Given the price action and combining it with the indicators from VantagePoint, a passive approach to the downside could prove to be sensible.

Because of the reasons given above, the purchase of a debit call spread may be one way to approach this situation. First, we’ll need to identify a target price.  This can be done with three key pieces of information. We can use the current price, time to expiration and at the money volatility. Using these data inputs, we are targeting the $74.00 strike.  If one were to consider the January 72.50/74 call vertical, it is trading $0.30 presently.  That a affords a trader a reward to risk ratio of 4:1

Given the trading and market environment outlined above, a trader must evaluate whether this reward/risk ratio is appropriate for his/her risk tolerance.

Use smart software to your advantage

VantagePoint Software uses the power of Artificial Intelligence. Traders use this to predict market direction and strength 1-3 days in advance with up to 87.4% accuracy.  With deep learning using neural networks, VantagePoint shows you what the market is going to do, not what it’s already done. Request a personalized demonstration of VantagePoint Software today. Learn why more than 25,000 traders trust the software to help them achieve trading success.

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