Hi Reid,
Thanks.... that $14.50 level is very important support as you noted, but how strong it is will have to be determined. I think it is likely that support will be broken.
There is lesser chart support at $16.60 (on a closing basis), and this was breached on Friday. So I am anticipating a fairly direct correction down to the next chart support at $16.00:
stockcharts.com[w,a]daclyyay[db][pb50!b200][vc60][iUb14!La12,26,9]&pref=G
Most likely I'll look for an exit there, and then regroup and wait for another shortable rally into resistance.
I think AMD will give a lot of short opportunities in the coming months. It trades in a pretty orderly fashion, but with a very nice degree of volatility (beta = 3.4). And, I think we'll see more volatility on the downside, which will help shorts, and which also makes long positions during relief rallies too risky IMHO.
Deterioration in QQQQ and especially the $SOX will be helpful here as well.
stockcharts.com[w,a]daclyyay[dc][pd20,2!b50][vc60][iLg!Lyb20,2.0]&pref=G
The $SOX has again been turned away from overhead at about $445; the BBs are extremely contracted, and the $SOX failed at the BB midline. This makes a push on the lower BB rail extremely likely, with a test of the 50 sma next on the agenda.
T |
