I believe AMD is showing positive signs of strength. AMD has taken a beating with the rest of the market and has come down to a major support level at about $86. It has tested this level twice and bounced away from it forming a signature "W" pattern. Should the pattern play out, the projected target is twice the length of the middle hump. The level is calculated to be about 115 for nice round numbers. That level also happens to be home to the 100SMA and another downtrend resistance. Looks like a nice target to me. I also see strong volume suggesting accumulation could be occurring.
Beware the pesky 50 SMA trying to ruin all the fun. The price has rejected this average several times already. If it rejects this time, the pattern would be more likely to fail and resume the downtrend. NOW OR NEVER, AMD!
Beware the pesky 50 SMA trying to ruin all the fun. The price has rejected this average several times already. If it rejects this time, the pattern would be more likely to fail and resume the downtrend. NOW OR NEVER, AMD!
Comment:
Looks like AMD took the long way. The breakout wasn't a failure, but merely a retest. Sometimes in the "W" pattern, the top left of the W connects with the high in the middle of the W to form a downtrend. We retested that line and then resumed the breakout. We are currently testing the 100. Lets see if we can break beyond it and reach the target of 115ish.