AMD short-term correction setup, long-term BULL case
AMD (Advanced Microdevices) has been on a tear, and for many good reasons. Still, note the short-term correction and whether all its current growth potential has already been priced in.
AMD gained strong profitability in 2016 and beyond posting strong and accelerating results with the success of its Ryzen processors.
AMD's ability to both produce and deliver more quickly than the industry Goliath Intel has had many rushing into this stock. Most interesting was the recent rotation of traders from Intel into AMD (though one would think not to bet against Intel, based on all history).
In this chart, we started with the Weekly pulling back the curtain on historical support and resistance trends. We then analyzed the impulse started end of 2015 / beginning of 2016 which coincides with the company's strong product releases and profitability.
In recent times, the company has been accelerating its success, now proving a strong contender against the traditional leader Intel, and further the acceleration of digital transformation due to the 2020 pandemic.
Note the end of this major first wave of the impulse. The stock may retest its high around $93, but we'd expect that it's more likely to see a correction towards $60 in the short term, though given the strength of this asset it would be unlikely to get all the way there. Still, one could set some buy ladders and try and get lucky with buy orders just above $60 and $50.
In the mid- to longer-term we expect this stock to break it's ATH and search for what could be a larger 3rd wave to the upside as tech innovation further accelerates worldwide.
Disclaimer: I am not a professional. Analysis is my thoughts and for my own education and revelations on trade setups. I am more than open to feedback or being pointed to resources that can improve my analysis. Thank you!
AMD gained strong profitability in 2016 and beyond posting strong and accelerating results with the success of its Ryzen processors.
AMD's ability to both produce and deliver more quickly than the industry Goliath Intel has had many rushing into this stock. Most interesting was the recent rotation of traders from Intel into AMD (though one would think not to bet against Intel, based on all history).
In this chart, we started with the Weekly pulling back the curtain on historical support and resistance trends. We then analyzed the impulse started end of 2015 / beginning of 2016 which coincides with the company's strong product releases and profitability.
In recent times, the company has been accelerating its success, now proving a strong contender against the traditional leader Intel, and further the acceleration of digital transformation due to the 2020 pandemic.
Note the end of this major first wave of the impulse. The stock may retest its high around $93, but we'd expect that it's more likely to see a correction towards $60 in the short term, though given the strength of this asset it would be unlikely to get all the way there. Still, one could set some buy ladders and try and get lucky with buy orders just above $60 and $50.
In the mid- to longer-term we expect this stock to break it's ATH and search for what could be a larger 3rd wave to the upside as tech innovation further accelerates worldwide.
Disclaimer: I am not a professional. Analysis is my thoughts and for my own education and revelations on trade setups. I am more than open to feedback or being pointed to resources that can improve my analysis. Thank you!