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Advanced Micro Devices (AMD) Pulling Back Testing 2018-High

We recently saw Advanced Micro Devices $AMD break out of a consolidation pattern. 

Advanced Micro Devices (AMD) Surges After Confirming Bullish Breakout; Morgan Stanley Walks Back Bearish Call

At the time, price was cracking the previous 2019-high around $30. I suggested the potential to reach $34, the 2018-high, with a strong potential of breaking higher.

AMD Daily Chart

(click to enlarge)

Resistance Holds, but Overall Price Action Still Looks Bullish:
- As we can see on the daily chart, price did get to $34, but retreated from there.
- I think the market will consolidate under $34, but still maintain that there is a good chance of breaking higher eventually.
- In fact, I am considering entering a position around the $28-$30 area with a stop under $26. 
- I would also try to time it with the RSI around 40. If price can hold above $28 and the RSI above 40, the bullish outlook would still look strong.
- A break below $26 would put price under the 200-day simple moving average (SMA), and would likely be part of a more extensive bearish correction. 
- For now, I will go with the trend and add to a decent position size relative to my portfolio (around 2%). I scaled out around $33 so I will essentially refill the position at a lower price if the market does get back to say $28. 

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