Trade Idea on AMD: The Case for a Sweet Double BottomAssumption & Context
Let’s address the elephant in the room: the $118 level. Technically, it's a lower low, just 3% below the previous $122 low. However, in my view, it’s not a lower low in the traditional sense. Why? Because this area likely attracted a ton of stop-loss orders, creating what I call (Wyckoff ripped me off) a "selling climax" — a quick 3% shakeout that wiped out the obvious players. It's like AMD decided to yell, "Gotcha!" before flipping.
This leads me to my current trading hypothesis: $118 could be the sweet spot for a double bottom, precisely the entry point that many savvy traders have been waiting for.
I’m betting AMD will leave NVIDIA eating its dust in the short to mid-term. Why? AMD’s upside potential is like spotting a rocket on the launch pad, while NVIDIA feels more like a plane that’s already cruising at 35,000 feet. And let’s face it, semiconductors + GPUs ?? — you can’t go wrong with them these days.
