I don't like the looks of AMD approaching the top of an established descending channel, however this is also potentially a bull flag. I suspect strong sales thanks to a silicon shortage and very high demand, history shows us this channel shall be respected to a point. I will look for a price test around $94.00 before making a decision to buy long. If we bounce off the channel and it collapses, back to the mid $80 range, I'll be looking to get long again there for another $90-$95 test.
There is no reason to believe AMD is going to massively break out of this range, as long as I've been trading AMD, it's respected its ranges pretty well. Therefore, as much as I'd like to say I'm long here, I'm short. I'll be pricing $85 puts Monday.
There is no reason to believe AMD is going to massively break out of this range, as long as I've been trading AMD, it's respected its ranges pretty well. Therefore, as much as I'd like to say I'm long here, I'm short. I'll be pricing $85 puts Monday.
Comment:
As anticipated, AMD has respected its channel and has broken down. The middle of the channel has held however. Looking for a long position now.