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Fan Yang

Advanced Micro Devices (AMD) Likely to Clear 2017 High

Advanced Micro Devices $AMD has been on a tear since breaking out of a bearish channel. Earlier in May, we saw the bullish breakout of the channel and suggested that the market will push AMD back to the 2017 highs around $15.50. We noted that if price retreated, holding above $12 would confirm the bullish outlook, but price pretty much went straight up after the breakout.

AMD Daily Chart

(click to enlarge)

Strong Breakout:
- The sharp bullish breakout and the eventually extension to the 2017-high suggests bulls are back in charge.
- When compared to the choppy price action since March 2017, the recent rally also suggests that the bullish market is the primary trend, while the sideways, bearish market was just a period of consolidation.
Bullish Target:
- Looking at the weekly chart, we can see that price has been sharply bullish since 2016. 
- After the 2017 consolidation into 2018, we are looking at a bullish continuation attempt as price pushes into a high not seen since 2007. 
- I think price can push to $20 per share, and I would limit the bullish outlook to $23.00 within a year. 
- We can see that this is around the middle of the long-term range.
- However, we can also see that above this price, price action has been sharp. 
- Perhaps we will see resistance here. Then, if price breaks above $23.00 then we might see another sharp push. But for now, we should respect the common resistance pivot around $23.

AMD Weekly Chart

(click to enlarge)

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