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AMTD - in my favorite long setup
Ameritrade is clearly a value pick. It has a Net Profit margin of 36%. And that company generates enormous Free Cash Flow. The whole company is valued at x1.55 Annual Free Cash Flow.
That is a very cheap valuation. From a technical perspective AMTD has an attractive chart. Actually that is my favorite LONG setup. You can clearly see a strong rally in wave ( 3 ) up that went almost vertical at the final topping stage in March 2018.
AMTD - weekly chart updated on 10-5-2019
Looking at a Daily chart below you can see that since the top made in March 2018 the stock has been in a corrective looking decline. I count that decline as a double Three corrective pattern labelled as (W)-(X)-(Y).
That correction is 98% completed at this point. After its completion we should get a new rally in wave ( A ) of ( 5 ) up that should target previous top in $60s neighborhood.
Is that a good time to go long right now? I personally will be waiting for $AMTD to test the Green Demand Zone under $30.00.
AMTD - daily chart updated on 10-5-2019
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