AMD (Advanced Micro Devices) fell -3.33% in late hours trading today, due to Dell Quarterly revenues more less being stagnant and growth-less. With that being said we can see the sell off was related towards the psychological reaction to dell stock selling off (since AMD chips are in Dell produced computers) i expect this sell off to be more so news reactionary than fundamentally sound.
Based off the technicals above we can see a few things.
- First off AMD could be a example of a Descending Bullish Wedge.
- CCI and DMI-/+ may suggest its bearish trend to be coming to a end soon, indicating towards now being a potential buy point. Mind you i buy in before mechanical's say go, because i appreciate getting on a train before it leaves the station lol.
- Parabolic SAR has been descending for a while, its about time for a mechanical turnaround.
Overall a reactionary behavioral response to a quick trending equity such as
AMD is almost invariably going to have a pullback day. Today was it. The next few days should prove to be bullish....i would guess hitting 7$ a share in a few weeks wouldn't be to far'fetched of an idea.
Position: LONG to 7$-$7.20
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