AMD is currently 30% off its highs. Since making a low in late January, AMD has found support and has consolidated. Connecting the support and resistance allows us to identify a symmetrical triangle consolidation. This pattern is neutral but it has a bias to current trend. The short term trend is down and I have also identified a potential head and shoulders on the larger time frame. Both lead me to believe that AMD could go lower. the targets from a Symmetrical triangle are equal to the width of the triangle. That means on the downside, we should look for $95 as PT 1 and $75 as PT2. On the long side, we can look for $130 as PT1 and $145 as PT2. A good stoploss would be the midpoint of the symmetrical triangle. Wait for the breakout confirmation (a strong close above or below the range) before trading.
Trade active:
Looks like the trade triggered to the downside. Short below 110 and stop out above it.
Trade closed: stop reached:
Stopped out. Watching for reentry possibilities.