AMD Initiates Our Anticipated Rally ... What's Ahead?
by Mike Paulenoff
October 9, 2021 • 1:00 AM EDT
In his September 30th chart analysis for MPTrader members, Mike Paulenoff wrote bullishly about AMD, noting:
"AMD has piqued my interest technically because all of the price action off of its ATH at 122.38 (8/04) into the September lows at 99.51 (9/20) and 99.81 (9/29) has the right look of a complete, or nearly-completed correction of the prior major advance off of the 5/13 low at 72.50. As long as the 99.50 support area remains viable support, my pattern work indicates that AMD is starting a new upleg that projects to a higher ATH in the 130 target zone."
AMD, which was trading at 103.49 at the time, tested and retested the 99.82/83 level, but preserved the 9/29 low at 99.81 before thrusting off support, climbing to a high of 107.95 this past Thursday.
The stock closed up 2.6% for the week, outperforming SPY (-1.8%) and QQQ (+0.3%).
What's next for AMD?
Mike wrote on Thursday that the stock is poised to "challenge its key resistance line off of the ATH (122.38), now in the vicinity of 106, which I expect to be taken out, triggering upside potential that argues for new ATH's above 122.38, into the 130 target zone."
He adds, "In that, the form of the rally from the 9/29 low at 99.81 to the 10/07 high at 107.95 exhibits bullish form, the current technical setup has very promising implications for upside continuation and acceleration in the upcoming days."
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One week ago, on Monday morning November 15, Mike Paulenoff posted the following alert for MPTrader members about HD (Home Depot):
"My attached Big Picture Daily Chart shows that all of the action off of the 10/27/21 ATH at 375.15 into last Fri's close at 372.63 exhibits the right look of a high-level bullish Pennant or Flag formation atop the upleg that started at the 10/10 low at 324.16.
Two months ago, on the afternoon of September 13, Mike Paulenoff brought to the attention of MPTrader members the intriguing and potentially opportunistic technical setup exhibited by the XOP -- the SPDR Oil and Gas Production and Exploration ETF.
Early on October 15, when CVS Health Corporation (CVS) was trading at 85.92, Mike Paulenoff highlighted upside opportunity for MPTrader members, writing:
"For the past 5 months, CVS has gone pretty much nowhere after hitting a new 6 year high at 90.61 on 5/25/21. It is precisely because CVS has traversed a sideways price path since late May that makes my work interpret the CVS technical setup as extremely promising for a run above 90.61 towards 100, and possibly 108-110 in the upcoming weeks and months.
On the morning of October 14, Mike Paulenoff posted the following time-sensitive comment about CHWY (Chewy Inc) to MPTader members:
"CHWY has the right look of a very mature correction from its ATH at 120 (2/16/21) to Monday's (10/12/21) low at 60.45, which represents a 50% haircut from the ATH. As of this moment, with CHWY trading at 62.72, my work does NOT yet have confirmation that THE LOW has been established.
MRNA's August downside reversal from a new all-time high (ATH) at 498.60 (8/10/21) to 349.00 (8/16/21) was just the first shot over the bow of a larger-developing corrective pattern and period.
Thus warned Mike Paulenoff to our members on the afternoon of August 16th, when, with MRNA trading at 363.
