As risk aversion pulls equities down, there are some stocks which we should consider buying on a dip. These are stocks which should be bullish if not for global risk aversion. In other words, if we take out the market risk, they should be bullish. AMD looks like one of these stocks.AMD Daily Chart 6/27(click to enlarge)Bullish Breakout: The daily chart shows that AMD has been consolidating in 2015, but started to push higher in 2016. There was a surge that started in April from lows under 2.00, to highs around 5.50 in June. This rally faltered as Brexit results rolled out, but not before clearly breaking a pattern of consolidation and putting price above the 200-, 100-, and 50-day simple moving averages. The RSI has also pushed above 70. Now, if it can hold above 40, it would reflect development of the bullish momentum started by the February-June surge.Pullback, Finbonacci Levels, and the RSI: There are a few of methods to track the current bearish correction. 1) We should look at some key fibonacci levels. I think the 50 and 61.8% retracement levels will be key. Note that 50% retracement is around a previous triangle apex, and the 61.8% retracement level is near the previous resistance area around 3.00. 2) We should also watch the RSI as it enters the 40-50 area. If it stalls and starts to move up, we should be ready for a bullish continuation attempt. Reason for Optimism:As Chris Lau from seeking alpha explains, there is a reason we should be excited about AMD's prospect:AMD Radeon RX 480 and Nvidia GeForce GTX 1080 are the best graphic cards in the market with the increasing need for virtual reality (VR). While AMD RX 480 cannot rival Nvidia GTX 1080 in terms of performance, for some reasons users may choose to go for the former. AMD seems to have planned everything effectively with its latest Radeon RX 480. With Nvidia's latest GPUs experiencing shortage because of high demand, AMD appears to have capitalized on the problem to supply more of its graphic cards. AMD's first shipment of the RX 480 GPU is hitting the United States stores, and the company has supplied the cards in surplus. A user reported via Reddit that one Microcenter store in Overland Park Kansas will receive 100 units of the AMD RX 480 on June 28, which is huge compared to the 4 Nvidia GTX 1080s the same store received during the launch.Read more: http://en.yibada.com/articles/135710/20160627/amd-radeon-rx-480-vs-nvidia-geforce-gtx-1080-solid.htm#ixzz4CnGlRp8A