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Fan Yang

Advanced Micro Devices (AMD) Breaks Falling Channel Resistance

Advanced Micro Devices $AMD has  been consolidation in a falling channel as we can see on the daily chart. (Looks like a flag pattern on the weekly chart. We recently noted that as price was approaching the channel resistance, to NOT rely on resistance.

AMD Daily Chart

(click to enlarge)

Broken Resistance:
- As we can see on the daily chart, price broke above the channel resistance and closed the week out at $13.00 a share.
- The breakout is not that strong though, and doesn't have that pop in volume.
- The RSI pushed above 70, which showed that there is strong momentum.
- Now, if price does pull back, we should monitor for support in the $11.50-$12 area. A break below $11 would reflect a market that is still in consolidation.
- A hold above $12 would be a strong sign that bulls are indeed back in charge. This scenario would put the $15.50 high back in sight. 

Long-term Chart Looks Bullish:
- The daily chart shows the consolidation since early 2017 when price was rejected from $15.50. 
- We can see that during the consolidation, the RSI held above 40 for the most part, which reflects maintenance of that prevailing bullish momentum since 2016. 

AMD Weekly Chart


(click to enlarge)

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