AMD Price Action: Wait for a Mid-Channel Bounce Before Buying

3 months ago

Josh

"And then tonight, AMD. Okay, these guys reported earnings. And as I look at the chart to my left, the price is red and precipitously falling. But let's keep things into perspective. This company had its best month in the month of October in the history of the company. The stock overall since April has gone up 250%. So at some point, you got to lock in gains. no matter how much you believe in the AI story or the opportunity ahead. And that's all that Wall Street is doing. Again, we have a pivot high and I want to show you the AMD chart because I want to make a point about uh what I'm expecting and where this could possibly go. Let's go look at AMD. I just want to point out that AMD is in an ascending channel and I just want to highlight that these are clear pivot highs, pivot lows, pivot highs, pivot lows, and this is very clearly a pivot high. Even if we had a reversal in the next couple days and managed to still come up to this 287, this is clearly a strong pivot high range. What I'm going to be looking for and what would be a more attractive buy for most investors would be to see this come back to the middle of this range. Remember, the top half of a channel belongs to the bulls, the bottom half belongs to the bears, and the middle is where I would likely see some form of a bounce. That would put AMD all the way back to $200."

The speaker discusses AMD's current earnings report with a falling stock price despite a recent 250% run-up since April. He advises caution and recommends waiting for the stock to rebound to the middle of its ascending channel (around $200) before considering a buy.

Related Stocks