AMD Update: Clarity comes with Larger PictureI have been really looking at AMD lately because it has been on a tear for years now. In 2018 it was trading for under $10 and closed over $172 dollars on Friday! Thats a 1620% return on your investment in 7 years...talk about insane! Last time I posted on AMD I made an hourly chart and I believe I was off by one degree. The main chart you see above is the daily chart but gives us a much better view of price action. I have said many times in the past but let me re-iterate myself, I DO NOT predict timeframes. With EWT, it predicts WHERE price will move but not WHEN. That being said, disregard the times where I placed my labels and concentrate on what price levels they're at.
Looking at structure I believe we're in wave (iii) of (5) of ((1)). We hit the 0.786 and bounced down starting what I'm calling wave ii. If this is the case, then we should drop to the target box I have labeled ii. I know this is a decent amount different from my prior post, and I apologize for that. Sometimes the smaller time frames can get messy and complex, thus the reason for the title. After zooming out and looking at price action on the larger timeframe I believe this is the most accurate count. This is a wave ii, and they can be unpredictable. They're either long, short, deep, or shallow and alternate with iv's.
This pairs with what I expect to happen from the indices soon. Price has literally doubled in the last 3 months or so too, so I imagine people will be wanting to take some profits. As I said, wave 2's can be shallow, but it isn't uncommon for a move of this nature to drop to the 0.236 which would be @ $114.87 in this case. On the micro's that price point is between the 0.618-0.786 retracement fibs which is also considered a standard retrace for wave 2's of any degree. I have an alert set at $150 which is at the 0.382 retracement fib. At this point I will be looking at buying in possibly. I already have a few trades going through, and I don't want to overextend myself so we will see if I join the trade or not.
I will be watching this closely the next few trading days to see what happens. We should get some important clues soon to help guide us further. Yes, I do have my wave (v) of (5) of ((1)) target @ the $450 area. With the craze surrounding AI and how it is going to change our lives very soon, it should come as no surprise to anyone some companies (AMD included) are going to benefit from their positioning in the market sector. When I get more data I will update y'all.
Below is the weekly chart showing y'all an even more zoomed out picture.
Don't forget, beginning February 23rd, I will be dramatically changing my posting schedule here on trading view. My last regular post / update will be on that day.
