Expecting a +18% Move on AMD

Good morning traders! Today we are going to talk about the situation of AMD, since it is at a critical level, generating an interesting behavior.

What can we see in this chart?

🔸Well, first of all, clarify that it is a stock that is at historical highs, in a marked upward trend.

🔸What happens in all clear trends is that there are impulses and corrections in the same direction. Every time the price generates a corrective movement, it is expected that the next impulsive movement will be in the direction of the trend.

🔸We can see that clearly in the correction that occurred in February of this year, where the price had a correction of almost 40%, and then continued with a great upward momentum of approximately 70% rise.

🔸Right now we can see a scenario very similar to that.

🔸From all-time highs, a correction of about 20%, and, at this moment, the price is against the resistance zone.

What should we expect now?

🔸As we see in the previous case, the price usually consolidates in the Resistance zone, and then generates the strong breakout. This consolidation is happening at the moment, so we must be very attentive to the possible breakout to the upside.

🔸The minimum distance that can be expected is the distance between the extremes of the corrective pattern, which gives us a rise of approximately 18%.
AMDanalysisBullish PatternsESLONGMultiple Time Frame AnalysisNQQQQSPX (S&P 500 Index)SPDR S&P 500 ETF (SPY) Support and ResistanceTrend Analysis

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