AMD
Following from our prior update, AMD into the Stratosphere, AMD hit the upper trend line as forecast, and corrected to the last prior area of support
Earnings growth is strong. So don’t expect this Stock to drop to a forward PE of 20x anytime soon. Ultimately looking for this stock to nudge new highs before any significant reduction in position (~50%).
There has been an observable Elliott Wave Pattern, which the stock appears to be in a 5th wave. It is possible the 5th wave has failed, in which case we are in the A wave. However, this seems premature. Given the buying strength.
Resistance and support are 150 and 135, respectively.
Given current price is in the $146 area, can’t see much point in trimming for a potential $10 move to support. It may even bounce off the diagonal support line to make new highs. Should the stock break the diagonal support line, then expect to consolidate sideways for a few more months. First Buying level is as close to $135 as possible. Small buys only (up to 2% of portfolio).
Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any trading losses you may incur as a result of this analysis. Individuals should consult with a regulated financial advisors before engaging in any trading activities.
