Technical Tidbits:
1. After last week's pullback in the general indices, each of the DOW, Nas and SOXX are at or near fairly firm support zones...as is AMD...The upcoming shortened trading week is interesting if for no other reason than to see how well these support zones hold up...If support holds, general indices could easily test their recent highs of 11400, 2300 and 700 by the end of the week. If support does not hold, the next zones of support are 10800, 2100 and 600...
2. With respect to AMD, a fairly strong pennant configuration remains in place with upper and lower boundaries of $36 and $31.50 +/- $0.50...Within this configuration there remains minor resistance at $32.50 and a gap which occurred last week between $33.25 and $34.00 which begs to be closed...Assuming the lower boundary holds, a test of last week's high of $34.50, and perhaps even the upper boundary around $36 by week's end, assuming general indice support holds and positive rumours continue to swirl around AMD, cannot be ruled out...Any successful penetration of the upper boundary will result in a fairly rapid move into the $40's...The next level of support below the lower boundary arises around $28.00...
3. Crystal Ball: Owing to the fed's accommodative stance, support at current levels holds and the general indices move north once again to test their recent highs...Both AMD and INTC, in this favourable environment, test their recent highs of $34.50and $32.00 respectively this week, setting the stage for a major uptick by each next week owing to all the favourable company news surrounding new product intros on June 4, and supported by the mounting economic indicators that recovery in the PC market has begun...AMD's rate of price ascent is greater than INTC's owing to "new AMD product info." that clearly suggests the likely successful penetration by AMD into market segments from which AMD has previously/recently been excluded (i.e servers and mobiles), and which, as a result, suggest a going forward 5 year AMD average growth rate of 25% (conservatively???) and support an above average P/E multiple of 30 to 40!!!
4. Owing to the tailing off in volume last week leading into the week end and given the Memorial Day holiday today, the possibility of pent up demand does exist and as a result heavier daily trading volumes are a distinct possibility this week...Heavier than normal volumes are a recipe for a strong directional move...Up, up, up, if I have it my way!!! |
