Here is an interesting chart I created.
DAILY DOT CHART
DAILY CANDLE CHART
60MIN CHART
Advanced Micro Devices Inc. reported a first quarter EPS of
-0.13, well above (25.77%) the consensus estimate of -0.18. $AMD stock price has
been experiencing strong accumulation after the company announcing that new
servers will be launching on its technology at a much cheaper price. Current
trend for $AMD appears to be very bullish with a strong potential of reaching
the upper channel extension in the mid term.
I am going to start off by covering the first image (Daily Dot Chart). I changed the price settings to a Dot graph because I want to make
evident past gaps that are significantly important for the forthcoming price
action. Gaps most of the times serve as very strong S&R levels, also they
tend to repeat themselves close to where they occurred in the past; so after
$AMD breaks the $4.30 support, we could see a large gap in the next opening or
so.
Important levels to pay close attention are around:
$5.50—$5.30—$4.80—$4.30—$4.00.
I bought shares at 4.06 after breaking above the $4 support,
closing the day about 5.8% up. Personally I discovered $AMD a bit late, not
being able to buy right above the lower channel extension, however I think
there is still immense opportunities of profit at current levels. $AMD shows a
Volume by Price with strong support around the $5.30—$5.50 level; notice that
it is one of the lenghiest bars in the graph. If we get to see a breakout above
that Volume by Price bar, one could predict higher prices, eventually reaching
the upper channel extension.
Other events to consider: MACD is bullish; RSI is
overbought, not meaning there is going to be a reversal, though a soft
consolidation might soon originate.
The second image is based on a 60min time frame. $AMD
appears to have a rising wedge pattern with a successful bullish breakout; right
below the upper line is a decent exit point just in case there is any pullback which
$AMD might eventually encounter. In
conclusion, I am long $AMD since $4.06 with a strong bullish forethought.
Alexander Schachter
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