Huge Breakout to the Highs in AMD Today

Jul 26, 2017: 9:12 AM CST

Finally, we get an example of a big stock beating earnings positively and then rallying.

AMD is our latest bullish “strong stock getting stronger” that broke resistance last night to trade up to the next target level, and sneak to a new high – above $15.50.

What are we watching and what are the trading plans here?  Let’s see:

AMD Breakout

After a May crash toward the rising 200 day SMA ($10.00), buyers held support and continued the threatened uptrend already in motion.

The series of higher price highs and lows continued to today where buyers used last night’s earnings beat to generate a short-squeezed breakout to new highs.

At this point we’re simply watching the “Open Air” range between $14.50 and $15.50.

Let price shake out today if you’re not already positioned to see what happens next.

Should buyers push price above $15.50, it likely extends the short-squeeze in motion, making us “bullish only” above $15.50.

If instead sellers defend the prior high (resistance level), play cautiously bearish toward $14.50.

Either way, have fun with this bullishly trending tech stock – one among many.

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Corey Rosenbloom, CMT

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