July 25, 2023, 11:48 am EDT
2023 Actual Trades: NXPI +23% Profits
When considering a candidate to buy into your portfolio, always search from a strong sector or industry. Then, filtering out stocks already too extended from a proper entry point. It means avoiding buying in too late which could cause immediate red color in the portfolio during the pullback or sharp drop.
We applied this methodology for this trade on NXPI which made +23% profits in two months.
As stated in our article Leaders of the 52-week Highs, NXPI was at the bottom of the list. Although it did not run fast as NVDA or AMD, NXPI is within one of the strongest industries, semiconductors.
As shown in the featured chart that 05/26 was a perfect day to get into the NXPI as it finished its 4-month downtrend channel. A powerful gap-up boosted its upside momentum and kicked out its coming rally.
When buying into it at the right time, the rest of the story is easy. It simply kept on going up for the next two months without hesitation for the +23% profits.