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AMD: Technical analysis of the sharp decline

After almost tagging 8.00, AMD retreated last month, accelerating last week and falling below 6.00. This week, price continues to look heavy. Let's take a look at the weekly chart and the technical picture of AMD after this correction. 

AMD Weekly Chart 9/14

(click to enlarge)

Fibonacci Retracement:
- The weekly chart above shows some key fibonacci retracement levels. 
- 38.2% around 5.50-5.55
- 50% around 4.80
- 61.8% around 4-4.05. 
- 78.6% around 2.95-3.00.

Support/Resistance pivots:
- The weekly chart also shows some previous support/resistance pivots.
- 4.30-4.80
- 3.00-3.37

4.80 is a confluence of pivot and fibonacci level and should be monitored for support. We should also monitor the RSI. If it stalls around 40 and turns up, we can expect a bullish attempt.

However 8.00 might be the high on the year, which means even if we believe that AMD has turned bullish, we should anticipate a significant period of consolidation after such a sharp reaction near 8.00.

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