AMBA acted precisely how I wished. They reported excellent numbers in my opinion. Their guidance was weak, but that should have been expected. I would love to see shares break $50. This stock can get emotional and illiquid pretty fast.
Take this afternoon for example, when just a couple hundred thousand shares moves the stock 5% (pictured below).
Fundamentally I love AMBA, so at what price do I want to start building a position?
Ideally I would like to see the market flush out all the weak hands and I think that would certainly happen if the $48.30 level is breached. Based on the volume profile of price, a significant amount of shares were exchanged around $50. Traders are likely risking down to the last relative low of the previous dip they bought, which has been around $48.30 a few times.
Lets be patient and watch this crazy stock dance around for the next few days. Ill take a stab long if AMBA breaks the aforementioned price level and significant volume coincides with a rapid and quick decline.