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Fan Yang

Advanced Micro Devices (AMD) Should Settle Around $16

Advanced Micro Devices $AMD has been retreating sharply. Earlier in October I assessed downside risk towards the $20 area.

Advanced Micro Devices (AMD) Finally Taking a Breather

However, price has fallen way below $20, almost tagging $16 this week before a brief rebound.

I think AMD is now approaching key support and should find buyers in the $14-$16 area, but possibly sellers as well at the $20 area. 

AMD Daily Chart

(click to enlarge)

Sharp Pullback and Support:
- First of all, let's acknowledge that AMD was hyped up too much in 2018. 
- After breaking a period of consolidation by mid-year, price surged roughly 100%. 
- We are now seeing a pullback to the breakout point from earlier in the year. 
- For someone bullish on AMD, this sharp pullback is healthy and provides a much better entry point.
- And at the end of the day, the overall market since 2017 is still bullish as we can see on the weekly chart.
- In fact, support here above $14-$16 would confirm the bullish mode, though we will likely NOT see another swing like the one in 2018. 
- Below $14, then we are might see AMD going to $10 before significant support.

AMD Weekly Chart

(click to enlarge)

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