We're going to look at 3 separate indicators on the 4h chart for this: TRIX (triple trend oscillator), IV (implied volatility), and RSI (relative strength index).
TRIX: Trigger line (yellow) shows that yesterday was the beginning of a momentum shift. You can tell this by the inflection point on the bottom of the lower oscillation. The trigger line is approaching the zero line and could soon cross the green 20 day EMA. That would signal a large increase in momentum and volume.
IV: lower than the mean, signaling a higher probability of the stock swinging in either direction. With the TRIX and RSI where they are right now, I'm inclined to believe the swing will be in the positive direction.
RSI: Approaching undersold in both the 4h and 30m charts, indicating a rally coming soon.
Additionally, a Fibonnaci spread is used and fits pretty well to the relative resistance lines. The fib spread shows $30.05 as a strong support and $31.11 as a strong resistance. If we can break through $31.11, we will likely head towards $32.42. I'm personally making an option call for $31.00 by 6/28 and hope to be well in the money by then.
If stock closes significantly below the $30.05 line this analysis could be rendered useless. If that's the case, a bearish scenario of AMD to $28.99 could occur as well. Happy trading,
-A
TRIX: Trigger line (yellow) shows that yesterday was the beginning of a momentum shift. You can tell this by the inflection point on the bottom of the lower oscillation. The trigger line is approaching the zero line and could soon cross the green 20 day EMA. That would signal a large increase in momentum and volume.
IV: lower than the mean, signaling a higher probability of the stock swinging in either direction. With the TRIX and RSI where they are right now, I'm inclined to believe the swing will be in the positive direction.
RSI: Approaching undersold in both the 4h and 30m charts, indicating a rally coming soon.
Additionally, a Fibonnaci spread is used and fits pretty well to the relative resistance lines. The fib spread shows $30.05 as a strong support and $31.11 as a strong resistance. If we can break through $31.11, we will likely head towards $32.42. I'm personally making an option call for $31.00 by 6/28 and hope to be well in the money by then.
If stock closes significantly below the $30.05 line this analysis could be rendered useless. If that's the case, a bearish scenario of AMD to $28.99 could occur as well. Happy trading,
-A
Comment:
UPDATE: News of the U.S. Department of Commerce banning AMD's Chinese affiliate, Higon, has thrown TA out the window and now we aren't sure of what's going to happen to the stock. However, I would advise against buying the suggested call above.