AMD Daily Chart ~ A Correction for Outside the Upp
Post# of 2561
Posted On: 01/19/2014 10:04:28 AM
AMD Daily Chart ~ A Correction for Outside the Upper Bollie
I received a couple of requests for a chart on AMD. This stock has been a good one to swing trade, but I completely missed the move off the lows of November and the break over the horizontal resistance line. One can clearly see the large gap down in late October from 4.13 to 3.04. Shortly after that collapse, the stock established its rising channel line. After breaking above the resistance line in late November, the stock began it's climb to close that gap, which happened in early January. For those that might have been in the stock during this period, the next logical point of resistance should have been the previous high of 4.65 in July. The stock now has a double top at 4.60. Additionally, look at the candle of Wednesday as it traded well outside the upper bollie. Although not a guarantee of an immediate pullback, it should always be a caution sign as we know that a stock will always come back within the bollies. The previous high is 4.13, set in October, so a calculated point of support should be at that level, as was seen in January prior to the pop to 4.60. Keep your eyes on the FullSto and MACDs for further weakness. If you entered near the lows Oct/Nov, you've made a great trade even after the correction of Thursday and Friday. GLTA
I received a couple of requests for a chart on AMD. This stock has been a good one to swing trade, but I completely missed the move off the lows of November and the break over the horizontal resistance line. One can clearly see the large gap down in late October from 4.13 to 3.04. Shortly after that collapse, the stock established its rising channel line. After breaking above the resistance line in late November, the stock began it's climb to close that gap, which happened in early January. For those that might have been in the stock during this period, the next logical point of resistance should have been the previous high of 4.65 in July. The stock now has a double top at 4.60. Additionally, look at the candle of Wednesday as it traded well outside the upper bollie. Although not a guarantee of an immediate pullback, it should always be a caution sign as we know that a stock will always come back within the bollies. The previous high is 4.13, set in October, so a calculated point of support should be at that level, as was seen in January prior to the pop to 4.60. Keep your eyes on the FullSto and MACDs for further weakness. If you entered near the lows Oct/Nov, you've made a great trade even after the correction of Thursday and Friday. GLTA
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