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

Tom Bowley
About the author: is the Chief Market Strategist at EarningsBeats.com, where he provides stock market education, guidance, and trading strategies using a unique combination of technical, fundamental, and historical analysis. Tom provides EarningsBeats.com members with four portfolios (Model, Aggressive, Income, and Value), all designed to beat the benchmark S&P 500, and a revolving Watch List of hundreds of companies reporting strong quarterly earnings (must beat both revenue and EPS estimates) and exhibiting technical strength as well. These companies comprise EarningsBeats' annotated Strong Earnings ChartList (SECL), from which Tom trades exclusively. Tom writes a Daily Market Report (DMR) for members to include an executive summary, market outlook, sector/industry watch, and trading ideas. Learn More
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