AMD (1h): Stoch(14,3,1) down and with slightly decreasing volume.
During the last weeks, AMD has been hit in a "Minor"-wave 4 correction. - IMHO, this correction is about to be over!
Reasons (from Elliott Wave):
(1) 0.500 retracement of a "Minor"-wave 3 in a corrective "Flat"-pattern with a 3-3-5 counting.
(2) 0.618 retracement of wave 5 (often 0.618 of the sum of wave "1" and "3" together) within the last leg ("Minute"-impuls-wave c, red counts) to level $ 12.41.
(3) Often, a corrective ABC pattern ends right below wave"A".
(4) This area is right above the peak of "Minute"-wave 1 ( $ 12.03, 2016-12-28, black horizontal line) and, according to the rules, a wave 4 is not allowed to go any deeper. If it would, we would have an "Ending-Diagonal"-pattern, where every Impuls-wave consists of an ABC pattern...
(%9 Corrective wave "4" patterns often end very near to a trendline or right below!
Reasons (from Line studies):
(1) There is a small falling wedge (two red lines), AMD is actually in, with bars as if "walking down the road", just below the UPPER line and with moderate volume...
(2) AMD is very near to the lower end of the old TC (green), which is still intact.
(3) There is probably only a general flattening of the trend (see new TC with a handdrawn SL).
Two possible Scenarios, due to the fact, the overall market will probably be bearish during the coming sessions (at least on the opening):
(1) AMD stays above the green resistance line AND within the little wedge, area $ 12.30.
(2) AMD falls below the line. Next support would be at $ 11.00, near the new TC-line. (Be aware, there could be a bear trap!)
Still on "neutral", but if the market calms down...
During the last weeks, AMD has been hit in a "Minor"-wave 4 correction. - IMHO, this correction is about to be over!
Reasons (from Elliott Wave):
(1) 0.500 retracement of a "Minor"-wave 3 in a corrective "Flat"-pattern with a 3-3-5 counting.
(2) 0.618 retracement of wave 5 (often 0.618 of the sum of wave "1" and "3" together) within the last leg ("Minute"-impuls-wave c, red counts) to level $ 12.41.
(3) Often, a corrective ABC pattern ends right below wave"A".
(4) This area is right above the peak of "Minute"-wave 1 ( $ 12.03, 2016-12-28, black horizontal line) and, according to the rules, a wave 4 is not allowed to go any deeper. If it would, we would have an "Ending-Diagonal"-pattern, where every Impuls-wave consists of an ABC pattern...
(%9 Corrective wave "4" patterns often end very near to a trendline or right below!
Reasons (from Line studies):
(1) There is a small falling wedge (two red lines), AMD is actually in, with bars as if "walking down the road", just below the UPPER line and with moderate volume...
(2) AMD is very near to the lower end of the old TC (green), which is still intact.
(3) There is probably only a general flattening of the trend (see new TC with a handdrawn SL).
Two possible Scenarios, due to the fact, the overall market will probably be bearish during the coming sessions (at least on the opening):
(1) AMD stays above the green resistance line AND within the little wedge, area $ 12.30.
(2) AMD falls below the line. Next support would be at $ 11.00, near the new TC-line. (Be aware, there could be a bear trap!)
Still on "neutral", but if the market calms down...
Comment:
Before I forget: AMD "Minor"-wave 3 has a similar elongation as "Minor"-wave 1! Therefore, "Minor"- wave 5 could be extended, with target: $ 19.00 - 21.00.