AMD 's RSI has been decreasing since 2016 December, and its price seems to have formed a head and shoulders pattern. It had some serious price drops with large volume after its left shoulder and head, breaking the 50 day moving average. After forming the right shoulder and undercutting the 50 MA, it showed a churning day ( high volume during the day, but no significant price progress), couldn't retake the moving average and continued with a definitive downward move. It found a significant support around the 9 level, which if it breaks, it could correct until the 6 level (-30%) since it is the next significant support. If it continues moving higher from the 9 support, the 50 day MA, the yellow trendline and the purple trendline are acting as resistance, which it would have to show significant volume upwards for the trend to change. As long as these levels hold, the trend is still downward.
I'm sorry to saw but man your just wrong, First off with head and shoulders the shoulders are supposed to0 be EQUAL. The left should CANT be 10% bigger that makes no sense, who has a shoulder that's 10% bigger than the other. Second, the rsi is clearing rebounding and ready to go, third the indicators I have all show Bullish, the green line just crossed the red line, it shows market bottom and it just rebounded off the RSI bands. every single time it went past that green line it fucking exploded to an avg gain of 30%.
BenedekBokor
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@charlief782, The head and shoulders pattern is not carved into stone, it is never perfect like most patterns in the markets. "Who has a shoulder that's 10% bigger than the other"? If you read William J. O´Neil´s book about short selling, which collected the best short sales in history and is full of H&S patterns, you will see that half of the time, the shoulders are not aligned. Regarding the RSI, I would not call the one week of little tail turning upward "clearly rebounding". Your indicator suggests what I also wrote in my analysis, that it might bounce back from the 9 level, but as long as it stays below the trend line, which connects B and D on your analysis, the long-term trend is still to the downside. My trading idea becomes live, when the stock breaks the 9 level. It might go up 30% from now, it might not, the analysis is only my opinion, but thank you for sharing yours!
RobertNemitz
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Bull Flag not bear! Got to stop drinking this early! LOL
BenedekBokor
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@RobertNemitz, can you show me where you see the bull flag?