AMD: The Next Major Support Level!Key Observations:
Daily Chart (Left)
Support Level Break: AMD has lost the critical support level at $148.01, indicating potential continuation of the bearish momentum. This breakdown suggests increased selling pressure, possibly leading to further declines.
Large Bearish Candle: A significant bearish candle following the support break after earnings reinforces the bearish sentiment, signaling that sellers have taken control after the support failure.
Weekly Chart (Right)
Long-Term Trend Line: The price is approaching a long-term trend line, which has historically acted as strong support, since Oct 2022. This trend line is crucial as it could provide a possible area for a bullish bounce or, if broken, lead to a long-term reversal.
Overall Bullish Structure: Despite recent declines, the overall weekly structure still holds a long-term uptrend. However, since it topped in March this year, we don't see AMD making higher highs/lows, and this could be a problem, especially if AMD loses this trend line in the next few weeks.
Conclusion:
AMD’s breakdown of daily support at $148.01 signals bearish momentum, and now it seems that AMD is seeking the weekly trend line, which serves as a crucial support area to watch for potential bullish reactions. This is our last major support level, as if AMD loses it, we'll see a big reversal in play.
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All the best,
Nathan.
