Hello traders and investors! Let’s see how AMD is doing today!
The stock is engaged in a short-term bear trend, and it is doing what it seems to be a Falling Wedge chart pattern. The 21 ema is going down along with the price, and as long it keeps inside this wedge, the price will continue to move erratically.
An upwards breakout could lead AMD at least to the $ 82.93 region, and would trigger a pivot point (green line, $ 78.75) at the same time. This could be the reversal pattern AMD needs in the short-term to change its trend.
Now, the daily chart will offer us more clues:
The scenario is quite complex from this perspective, as the major trend is still bullish, but AMD is trading under the 21 ema, and it lacks the strength to do a higher high.
The good news is that the support at $ 76.13 is holding the price until now. The bad news is that AMD is in a Trap Zone, between the descending 21 ema and its support. We may see a breakout in any direction.
If AMD loses its support along with the Falling Wedge in the hourly chart, the gap will attract it and the $ 69.80 will be the next target.
Regardless of what happens, these are the most important points to keep in mind in the short/mid-term. And if you liked this idea, please, support it! And follow me to keep in touch with my daily analyses! Every day, I’ll share a few thoughts with you, and I’m sure you’ll find something interesting around here.