AMD: Daily and Weekly Charts Analysis.The chart for AMD shows several significant technical patterns indicating both potential resistance and support areas that we should closely monitor.
On the daily chart, AMD is trading within an ascending channel. This pattern, characterized by higher highs and higher lows, typically signals an overall upward trend. Currently, the price is approaching the upper boundary of this channel, around $187.69, which has acted as resistance in the past.
This resistance level is further reinforced by previous price rejections, indicating a strong supply zone around this price point, as evidenced by the red arrows. If AMD manages to break above this resistance convincingly, it could pave the way for further bullish momentum.
However, a failure to break above this resistance might lead to a pullback towards the lower boundary of the channel. AMD needs to react above the $174.55 in order to avoid losing momentum.
On the weekly chart, AMD shows a clear pivot point around $174.55, aligning with the support level identified on the daily chart. The bullish bias is also reinforced by a long-term ascending trendline, which has been providing support for the price.
The weekly chart suggests a strong uptrend as long as the price stays above this trendline. Any pullbacks to this trendline could be seen as buying opportunities, provided the price action shows signs of support. Conversely, a break below this trendline and the $174.55 level could indicate a more bearish outlook, potentially leading to further declines, officially reversing the long-term bull trend.
In summary, AMD's chart demonstrates a bullish bias within an ascending channel on the daily chart and a supportive trendline on the weekly chart. Key levels to watch include the resistance around $187.69 and the support around $174.55. A breakout above the resistance could signal further upside potential, while a failure to break above it or a breakdown below the support and trendline could suggest a shift towards a more bearish scenario. For now, we should closely monitor these levels and look for confirmation through price action before making trading decisions.
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Remember, real trading is reactive, not predictive, so let's stay focused on the key points described above and only trade when there is confirmation.
“To anticipate the market is to gamble. To be patient and react only when the market gives the signal is to speculate.” — Jesse Lauriston Livermore
All the best,
Nathan.
