Tuesday, October 2, 2012

AMD Advanced Micro Devices Weekly and Daily Charts Oversold Falling Wedges Positive Divergence


AMD is set up very attractively with positive divergence on both the daily and weekly charts across all indicators. This is typically a very high percentage play. AMD is on the launch pad, all fueled up, waiting for the fuse to light.  The stock has been beaten to a pulp and at the least a dead cat bounce would be expected but with the falling wedges, oversold conditions and universal positive divergence, the bounce should be more like a rocket ship ride.  Perhaps some news will hit about a big contract for AMD? Or maybe they fire thousands of workers, that will get a stock price to move higher.

The downward-sloping channels are wicked.  The only  item to knit-pick is the last few days with the MACD line and money flow. There is the tiniest bit of desire to see another matching low to today's numbers, say, 3.17-3.25, printing inside the apex of that falling wedge, and that should seal the deal for the bull launch.  As always in trading, the best looking trades have a way of blowing up in your face so Keystone's carcass may end up strewn about in the parking lot. Calling bottoms is a dangerous game that Keystone plays. AMD will be fun to watch. Projection is a launch move higher at any time, perhaps targeting the gaps above (green circles). If a close under 3.2 occurs, the trade will likely have to wait and reload with more shares in the 2.7-2.9 area, but, considering the firm possie d, she looks good to go right now. Keystone is long AMD, bot more at the lows today. This information is for educational and entertainment purposes only.  Do not invest based on anything you read or view here.  Consult your financial advisor before making any investment decision.

4 comments:

  1. thanks for sharing, like your call on FB i think this will work too! FB's move has made me some nice coin! thanks for bringing this to our attention. the more beaten a stock the better the reward. some called me crazy going long FB at high teens and look where it's now: low twenties. weeee!!!

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  2. Thanks KS! You are wonderful!
    Great charts, hope to make some coins before Santa arrives in December.

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  3. Well, they all sound good, but time will tell, it may crash and burn. Give yourselves 100% of the credit if AMD does launch since you will have to take 100% of the fall if some bad news hits the stock and it receives a further beating. It will be interesting to watch over the coming days. The universal positive divergence is a big plus. Watch the action in INTC to serve as hints for how AMD will move.

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  4. Q3 results due for AMD October 18. Upside surprise which will be the catalyst KS was looking for. Or, buy the rumor sell the news kinda thing where it's up from here till then and then... Katzo

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