Soon after the previous idea AMD went up for the dreaded 4.50 mark. Again it did not breach higher, not even trading there, went straight down after it. Although there is my bad in missing one parallel line from the recent top to the whole predicted channel - it shows how much of a resistance was at that exact place.
At this moment we have a good setup for going to the lowest part of the range, and then possible trading alongside it towards earnings - technical indicators would be in place and with smooth price actions they will be at lows, the stock already took a dive now . AMD had not performed well on so many previous earnings that it is still a higher chance of it heading lower after the upcoming ones earnings. Upside is still limited with a strong resistance, but downside limit is further away. why? Well AMD had been trading in a 3.5 - 4.5 channel for a long time now, but the recent trading range closed the possibility to stay within the median of 4.0, so breaching 4.0 the stock would most probably dive again to the next resistance of around 3.6.
Note that the weekly chart suggest a lot of upside as the price is trading at the lows of the range going up
At this moment we have a good setup for going to the lowest part of the range, and then possible trading alongside it towards earnings - technical indicators would be in place and with smooth price actions they will be at lows, the stock already took a dive now . AMD had not performed well on so many previous earnings that it is still a higher chance of it heading lower after the upcoming ones earnings. Upside is still limited with a strong resistance, but downside limit is further away. why? Well AMD had been trading in a 3.5 - 4.5 channel for a long time now, but the recent trading range closed the possibility to stay within the median of 4.0, so breaching 4.0 the stock would most probably dive again to the next resistance of around 3.6.
Note that the weekly chart suggest a lot of upside as the price is trading at the lows of the range going up
