Anticipating Upside In AMD

On the morning of June 20, Mike Paulenoff posted a heads-up about AMD to MPTrader members, writing:

"AMD has been upgraded this AM by Piper Sandler with a Target Price of 175. Piper reiterated its OverWeight rating and has made AMD its top big-cap pick for the remainder of 2024. Technically, AMD has its challenges and its work cut out for it to climb to Piper's 175 target.  My attached 4-hour chart setup argues that for starters, AMD needs to climb above 158.60 to gain initial traction for a run at the next higher resistance levels of 162.50 and 164.85... At the moment my May-June pattern work has the right look of a completed major correction at the May low of 141.00 followed by the first upleg in a new bull or significant counter-trend period that has as its first high 174.55 (5/22/24). If the May low is violated, my current positive view of AMD's technical set up will be invalidated, and AMD will point to 120-123... Last is 155.81..." 

Fast-forward through last week's strong price action in AMD into Friday morning (June 28), when Mike followed up with this technical message for MPTraders:

As long as any forthcoming weakness is contained above key support from 155.50 down to 153.34 (see may attached 4-Hour chart), my May-June pattern work argues that AMD is in the grasp of a new bull phase off of its May 1, 2024 multi-month corrective low at 141.00, and is poised to challenge nearest key resistance at 164 to 167. If the resistance is taken out, AMD will project higher to test its 5/28/24 high at 174.55 where the stock will be positioned to trigger an intermediate-term upside reversal signal... Last is 162.85...

During Friday's morning session, AMD hit a recovery rally high at 166.45, up 6.8% from Mike's first heads-up on June 20, closing the week at 162.21, preserving key May-June support levels.

What's ahead for AMD?  As long as the support levels remain intact (see Red demarcated support zones on Mike's 4-hour chart), AMD has the right look of a bottoming period and pattern in the aftermath of a major correction (227.30 to 141.00) within a longer-term, dominant bull phase that originated at the October 2022 low of 54.57.

Login this week to join Mike and MPTraders for their ongoing opportunistic technical and fundamental discussions about AMD, NVDA and AI company setups, as well as many other individual equities, sector ETFs, macro indices, Treasury bonds, Precious Metals and Bitcoin.



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