For those of you who are following along with me on my little obsession with AMD, the past week was pretty exciting for those who were shorting the stock as the price dropped out of that short-covering rally like a rock for a $9.46 gain.
AMD is now reaching a very uncertain area with 3 support levels to get through and it's actually touched an ascending trend line, so I'm expecting a few bounces to occur. My first short target is the middle of the support area at 59.80, but with hindsight, it should have been 63.62 which is the first support level below the 2-year line. The ultimate target is still 50. It's very possible AMD will make a double-bottom before it gets to 50 so I would look out for that. I'm still bearish at this point.
Disclaimer: I am not a financial advisor, and the above statements are not investment advice. My comments are only intended for educational purposes. You are solely responsible for your own trading decisions.
AMD is now reaching a very uncertain area with 3 support levels to get through and it's actually touched an ascending trend line, so I'm expecting a few bounces to occur. My first short target is the middle of the support area at 59.80, but with hindsight, it should have been 63.62 which is the first support level below the 2-year line. The ultimate target is still 50. It's very possible AMD will make a double-bottom before it gets to 50 so I would look out for that. I'm still bearish at this point.
Disclaimer: I am not a financial advisor, and the above statements are not investment advice. My comments are only intended for educational purposes. You are solely responsible for your own trading decisions.
Comment:
AMD is inching closer towards the middle support line, possibly getting there during the first week of the new year.
Comment:
The middle support line was reached on January 6th. As of January 9th, we are in the middle of a short-covering rally. I expect the price to drop about as suddenly as it bounced off the support line.
Comment:
AMD has breached the descending resistance line and may try to reach for the 2 year level of 73.78. It could also run out of steam and head lower. We'll see what happens during the next trading session. I may go long and switch if it doesn't go my way. The trend is your friend as they say.
Comment:
Today's key reversal indicates that the rally is all but over. Tomorrow will tell, but it looks like a chance to get short again.
Trade closed manually:
I'm closing this one since the rally has been so significant that I don't think we will see the support level around 60 again for quite some time.
