AMD can offer a tremendous profit opportunity on the daily chart if you are patient and enter at the right time. The strategy I am using on it is buying long on any pull backs to its Fibonacci levels. These opportunities can offer 30%+ in price appreciation over a 60 day period in its current channel up from December 2018.
- AMD is currently in a nice channel up pattern and has been respecting this since about December 2018 - At market close 7-Day VWAP is trading about the 30-Day VWAP which is a positive sign of price appreciations - Price is also trading above the 21-Day EMA which can indicate the stock is in an uptrend - We can also see how price respect the retracement level and we just bounced of the upper trend line of the channel - We can see a potential negative divergence on the MFI which could indicate we will go back and test the previous Fibonacci and lower trend line of the channel - I will be looking for this scenario to play out in the next couple weeks or so. - I will post any updates as they develop
today's market on Tuesday 16th July 2019, it broke the resistance at 34.5 and went as high as 34.84, do you think its possible for AMD to go past 35 within this week and perhaps past 35 within next week?
Vitalfinancials
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@fahimmuchi, Good Morning, my apologies for the late reply. In my opinion, given we are trading at all-time highs on AMD I would not be surprised to see it consolidate for a week or two around the 34 to 34.50 level. Although we pushed through the retracement level, we are still respecting the upper trend line of the channel. However, it looks like we have bounced right of that line and are now coming back down.
The reason for my speculation on the consolidation is due to the fact that earnings is around the corner on 7/30. I have noticed an uptrend on stocks beginning around two weeks to earnings. Given the nature of volatility with AMD makes it difficult to determine what will happen.
I would be looking to see if we continue to consolidate at the current fib level, and if so, I would be looking for a big pop in the coming weeks.
I will publish and update this evening on my findings once I've had a chance to do a deeper dive. Hope this helps!