During the precious 3 days, AMD printed a bearish candle below structur, reclaimed back above structure, then proceeded to print 2 inside - inside (a candlestick pattern illustrating price consolidation on a lower timeframe). Ahead of earnings on Oct 31st, AMD has printed a bullish engulfing candle above the highs of the previous 3 candles and is closing into a previous resistance.
Note that AMD on the higher timeframe (weekly) is forming a sort of descending channel within what seems to be a huge pennant. This descending channel is also being at the HTF uptrend support.
Another piece of confluence is that price has broken the downtrend on the lower time frames while bounce from a demand and trendline support. Also, the stochastic and RSI are both oversold with both curling up.
Trade Idea:
As I do not trade earnings drops, I will wait for price action to confirm a trend change and move above resistance at 99.75 - 100.45 and hold above this level while forming a trend. If I get the trigger, I will expecting for price to make a move above to retest the downtrend line of the descending channel and possible even the major resistance at 111.09 - 111.77.
Targets: 105.56, 109.20, and 111.09
STOP: Daily candle close below 93.31, Weekly candle close below the green uptrend support line.
CAUTION: The MACD has yet cross up the signal line and we also have earning today so I wouldn't just swing blindly from here.