Mid July I posted a bullish idea on AMD and how the $93.50 level approximately was the level we wanted to watch as being key to AMD retesting and breaking previous all time highs.
Well AMD broke and found support at the $93.50 price level and upon doing so the price sky rocketed from that exact point and found itself on every news network this week that covers equities.
A pullback as we can see was very likely as a rejection at exactly the 1.618 Fibonacci extension level.. a very common rejection/reversal area after an asset smashes through all time highs and runs up in price. And now we see it struggling and getting rejected at the classic .786 fib level as well, typically the final blow of a parabolic runup in price.
NVDA is an asset that just weeks ago did the same thing and presented what has been a wonderful trade so far for those who have followed my idea on it by buying the pullback.
We are still in that NVDA trade currently and the same things I spotted in NVDA long before its drop and subsequent pump are some of the same things I am now spotting in AMD.
Looking both left and right, if you observe the color coded horizontal Fibonacci levels, we see confluence with a few overlapping lines. This is not coincidence and is in reality a very good sign as it adds credit to the idea that other smart traders are observing and trading these same horizontal levels of Fibonacci support.
I will be watching this closely in the coming days for a continued pullback which could bring it down to the $84 price level approximately.
Anyone who knows my ideas know that I wait patiently for a break of the .236 fib level on pullbacks, so I can then buy the breakouts of the .236 on the rebound back up. Which in this case means the price I will be sizing up a trade for will be $92 per share on AMD. This would be a nice 25% discount in price from its all time high set just a few days ago.
Also, there will be small trade opportunities at shallow fibonacci retracement levels for light positions but the real opportunities for an entry and low-risk trade will come at the lower fib levels as always.
Lastly, as I always point out, AMD does not HAVE to fall or go to these exact projected price levels. It is well within AMD's realm of possibilities to run higher in price.
However, given the runup that AMD has seen, and the strong rejection at a key area it is currently getting.. it is a high probability that the AMD dip has arrived and it is my belief that it will give patient traders a beautiful entry for another awesome trade here in the coming days and weeks.
Buy Levels
$122.41
$113
$106.12
$101.55
$97.17
$92.01
$84.24
Well AMD broke and found support at the $93.50 price level and upon doing so the price sky rocketed from that exact point and found itself on every news network this week that covers equities.
A pullback as we can see was very likely as a rejection at exactly the 1.618 Fibonacci extension level.. a very common rejection/reversal area after an asset smashes through all time highs and runs up in price. And now we see it struggling and getting rejected at the classic .786 fib level as well, typically the final blow of a parabolic runup in price.
NVDA is an asset that just weeks ago did the same thing and presented what has been a wonderful trade so far for those who have followed my idea on it by buying the pullback.
We are still in that NVDA trade currently and the same things I spotted in NVDA long before its drop and subsequent pump are some of the same things I am now spotting in AMD.
Looking both left and right, if you observe the color coded horizontal Fibonacci levels, we see confluence with a few overlapping lines. This is not coincidence and is in reality a very good sign as it adds credit to the idea that other smart traders are observing and trading these same horizontal levels of Fibonacci support.
I will be watching this closely in the coming days for a continued pullback which could bring it down to the $84 price level approximately.
Anyone who knows my ideas know that I wait patiently for a break of the .236 fib level on pullbacks, so I can then buy the breakouts of the .236 on the rebound back up. Which in this case means the price I will be sizing up a trade for will be $92 per share on AMD. This would be a nice 25% discount in price from its all time high set just a few days ago.
Also, there will be small trade opportunities at shallow fibonacci retracement levels for light positions but the real opportunities for an entry and low-risk trade will come at the lower fib levels as always.
Lastly, as I always point out, AMD does not HAVE to fall or go to these exact projected price levels. It is well within AMD's realm of possibilities to run higher in price.
However, given the runup that AMD has seen, and the strong rejection at a key area it is currently getting.. it is a high probability that the AMD dip has arrived and it is my belief that it will give patient traders a beautiful entry for another awesome trade here in the coming days and weeks.
Buy Levels
$122.41
$113
$106.12
$101.55
$97.17
$92.01
$84.24
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