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Advanced Micro Devices (AMD) - Do Not Rely on Channel Resistance

Advanced Micro Devices $AMD has been on a choppy ride since finding strong resistance around $15.50 a share, twice. 

AMD Daily Chart

(click to enlarge)

Falling Channel - Missed the Support:
- First of all, the support of the channel on the daily chart above is simply a parallel of the channel resistance.
- Based on this projected channel support, price missed it when AMD held above $9 a share.
- This is only a very subtle sign that bears are NOT in charge.
- Furthermore, the fact that the RSI pushed to almost 70 tells us that there is no bearish momentum.
- Also, price came back above the 200-, 100-, and 50-day simple moving average (SMA), which is a sign that bulls could be back in control.
- Basically, these are signs that warn us about relying on resistance if price approaches the $12.50-$12.75 area. 
- If there is a pullback, see if the $11 area will hold as support. Doing so would increase the chance that price will break above the channel, and will push towards the $15-$15.50 highs from 2017.

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