AMD Play:
* Enter on expanding volume on a break of $88.50
* Exit at $99.50, look for pullback for re-entry
* Full pattern price target: $106.81
* Stop loss 2 ATR at entry, around $84.50
* PnL Ratio: ~2.00
Rational:
* Trading within a rectangle pattern for the past 199D 5H
* AMD trades with
SPY
51% of time, we can see a recent large rectangle break on SPY, and SPY is close to breaking out of its own continuation rectangle pattern.
* Last rectangle we saw on AMD was for 104D, ended up far surpassing the 20% price target (+47%).
* Black Friday / Cyber Monday may lead to increased profits for AMD, investors may anticipate this and increase interest in AMD
* 50D MA has caught up to AMD, allowing it to "catch" AMD if it ends up falling slightly
* AMD still trading above 50D MA.
* Enter on expanding volume on a break of $88.50
* Exit at $99.50, look for pullback for re-entry
* Full pattern price target: $106.81
* Stop loss 2 ATR at entry, around $84.50
* PnL Ratio: ~2.00
Rational:
* Trading within a rectangle pattern for the past 199D 5H
* AMD trades with
SPY
51% of time, we can see a recent large rectangle break on SPY, and SPY is close to breaking out of its own continuation rectangle pattern. * Last rectangle we saw on AMD was for 104D, ended up far surpassing the 20% price target (+47%).
* Black Friday / Cyber Monday may lead to increased profits for AMD, investors may anticipate this and increase interest in AMD
* 50D MA has caught up to AMD, allowing it to "catch" AMD if it ends up falling slightly
* AMD still trading above 50D MA.