I was asked about the viability of an AMD purchase.
Not a trade I would take…
Price looks unable to pull away from the breakout from multi year highs. If it can get back down below the lower horizontal line, expect much lower prices.
Lots of support showing on this weekly chart.
Lots of support at multiple levels here… But the lower high and overhead supply is clear as well.
Metrics Snapshot As of Close 4 May 2017
The Trader Says:
Advanced Micro lags the broader SOX index in an environment when that index is doing nothing but going higher.
In fact, AMD hasn’t even made it up to TAOST Hi to Lo Magnet Zone.
I see no reason to play AMD long… while it’s certainly capable of resuming its upside run, the current price action suggests that’s unlikely to be the case.
Hope it helps.