Bullish on AMD to $87+ before earnings
Updated
AMD has been consolidating in a descending wedge pattern over the last entire month. This could be considered bullish or bearish depending on where you consider the wedge to start, but I'm bullish for the following reasons:
- breakout candle broke UP not DOWN out of the wedge
- breakout candle opened and closed above the 50 ema
- sellers have been losing steam according to MACD
- MACD lines are turning up... not quite crossing yet though
Because the MACD lines have not crossed yet, I will wait to see if Monday confirms the breakout or if we are going to fill the gap down to $70-$72 after all.
If the breakout gets confirmed my first price target is $87, where it should meet some resistance. From there we'll see if we continue up to a new ATH.
I don't feel like it will move TOO much before earnings, but if we blow through $87 then I would expect some resistance around the last ATH of $94.
- breakout candle broke UP not DOWN out of the wedge
- breakout candle opened and closed above the 50 ema
- sellers have been losing steam according to MACD
- MACD lines are turning up... not quite crossing yet though
Because the MACD lines have not crossed yet, I will wait to see if Monday confirms the breakout or if we are going to fill the gap down to $70-$72 after all.
If the breakout gets confirmed my first price target is $87, where it should meet some resistance. From there we'll see if we continue up to a new ATH.
I don't feel like it will move TOO much before earnings, but if we blow through $87 then I would expect some resistance around the last ATH of $94.
Trade closed: target reached
We're getting near that $87 resistance so I closed a winning debit call spread today. Going to wait and see if it looks like we'll keep going or turn around.Note
We've been in a rising wedge right up against that $87 resistance level.Closing price yesterday was $86.69 but premarket bid and ask are (as I write this, anyway) finally above $87. If we open and close above $87 then it should be a pretty clear path to retest the previous ATH around $94.
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