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!
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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.
It's getting interesting no doubt. I have a downtrend on the weekly that hits at about 114.28 this week (hopefully) also a 38% retracement from ATH to most recent low. May grab a short positions up there since big boys quietly loading huge July PUTS for SPY. NOT about to fight them even though I love AMD.
Decam9
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@Skegee52, Yeah, 115 was my nice round number but it was really closer to high 113/low 114. Im still looking for that final wave down but I'm going to be patient since June is usually a pretty bullish month. Im keeping my eye out for bearish news.
Skegee52
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real accumulation will start occurring at long term supports weekly 200 ema 50 ema on the monthly...this bullish move was a trap IMO
Decam9
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@Skegee52, I outlined in one of my posts on SPY that this should be a corrective wave before one more move lower. If that's correct, your analysis is also correct (One more bull trap before a dump.) I support your idea but still want to see a bounce before heading lower.
Steve666
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@Decam9, I can support this harmonically ... Looks like a Black Swan has formed off the double bottom with 100.23 (reached) and 123.13 targets. Additionally we have a potential Shark formation with a D point completion marked in the 117-122 area. Good eye.
Decam9
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@Steve666, Thats even higher than my initial target. Ill take it!