AMD was in a long term consolidation before the recent earnings call which made the stock run up about 275 before facing any sellers. The stock has a lot of pent up energy since it was in a consolidation for over a year. Stock has consolidated on lower volume and as indicated by the ATR and volume we are seeing a dry up of activity. We are working with little over head supply and the stock has respected its 21EMA very well. Price is also above AVWAP from the earnings date which is nice to see. We have also tight EMAs using the fibonacci numbers of 8, 13 and 21 which is showing the tighness of the setup.
Ideally would like to manage risk at the 21EMA or the low on Aug 19th. The bear case here is that all the buyers have already bought and this is a overcrowded stock with too much ownership. My thinking is that you dont see buying like that unless big players are after this name.