AMD Massive Run Imminent
AMD's 20-day SMA is about to cross below its 50-day SMA. This might be viewed in a vacuum as bearish and when AMD has been trading below its 20-day when this crossover occurs, it has led to lower prices and a continued downward trend. However the few times it was trading above both averages when the cross over occurred, the stock went on huge runs including a 150% run and an 80% run.
My guess is this will play out like it has historically barring a general market debacle. Long AMD.
My guess is this will play out like it has historically barring a general market debacle. Long AMD.
Comment
Correction 1: 20-week SMA and 50-week SMA were used to formulate this idea and are on the chart. I mistakenly said 20-day SMA and 50-day SMA which are not relevant.
Update 1: Price is close to or at the crossover point. If it trades lower soon, it could mean that it will be below the 20-week SMA during the crossover and therefore not likely to break out based on my idea.
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