Don't Ignore This Chart

Bullish Momentum Building Again On AMD

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Advanced Micro Devices (AMD) spent over a year with its SCTR among the highest of all individual stocks.  It was an impressive rally for sure as its stock price rose from below $2 to above $15 in 13 months.  But even the hottest stocks need to evenually consolidate to unwind perpetually overbought conditions.  AMD has been doing that, frustrating thousands of traders.  I don't believe this bullish story is over yet.  In fact, I view the consolidation as a very bullish ascending triangle pattern with volume picking up today to perhaps close at a 2 1/2 month high by 4pm EST.  We'll see.  In the meantime, I fully expect to see AMD challenge its double top and triangle resistance as shown below on this weekly chart:

Over the past 2-3 weeks, the SCTR has skyrocketed back above 80 and when AMD finally makes its ascending triangle breakout, I suspect that its SCTR will move back up into the high 90s as AMD regains its leadership role on the NASDAQ.

Happy trading!

Tom

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Tom Bowley
About the author: co-founded Invested Central and served as the site's Chief Market Strategist for more than 10 years. His unique trading style combines both his fundamental and technical strategies to systematically manage risk while trading. A regular contributor to StockCharts.com's bi-weekly ChartWatchers newsletter since 2006, Tom's role at StockCharts has expanded significantly since he joined the company as a full-time Senior Technical Analyst in March of 2015. Learn More
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