AMD Bear Trap?
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If you read my other idea about AMD reaching 50 by January, you will notice that everything seems to be playing out as expected.
I'm still learning to analyze chart patterns, and I asked someone who is teaching me to take a look at AMD. They acknowledged the downward channel and the recent triple-top pattern. But they also pointed out that the triple-top was in a support area going all the way back to 2020. If you look at the red line I drew, you can see it clearly. With that line in place, the period from Oct-Nov 2022 looks like a bear trap. I did note in my other post that it could be a cup and handle pattern. Either way, it would indicate a price move to the upside. So, now I have a dilemma. Do I continue shorting AMD or go long?
After today's drop of -1.88, I'm still short and also encouraged that I'm still "right" in my prediction. Lately, I've been missing opportunities because I wasn't fully committed to my own analysis. I need to believe in myself. So that's what I'm going to do this time. That doesn't mean I won't be watching to see what the market is saying. I've been told that the market is always right.
What do you think?
I'm still learning to analyze chart patterns, and I asked someone who is teaching me to take a look at AMD. They acknowledged the downward channel and the recent triple-top pattern. But they also pointed out that the triple-top was in a support area going all the way back to 2020. If you look at the red line I drew, you can see it clearly. With that line in place, the period from Oct-Nov 2022 looks like a bear trap. I did note in my other post that it could be a cup and handle pattern. Either way, it would indicate a price move to the upside. So, now I have a dilemma. Do I continue shorting AMD or go long?
After today's drop of -1.88, I'm still short and also encouraged that I'm still "right" in my prediction. Lately, I've been missing opportunities because I wasn't fully committed to my own analysis. I need to believe in myself. So that's what I'm going to do this time. That doesn't mean I won't be watching to see what the market is saying. I've been told that the market is always right.
What do you think?
Note
AMD dropped further today (-2.40 -3.48%), and the price action seems to be following my orange arrow, even matching the short covering rally I expected. Let's see how it goes as we head into Friday and next week.Note
AMD's price has continued to drop in spite of a couple short-covering rallies, confirming my prediction that the price would make a big move lower, possibly reaching 50 sometime in January. I admit I may have been a bit too aggressive on the timeline, but anything can happen. There are still a few trading days left.Note
I think the most recent short covering rally could be coming to a close tomorrow. Did this one coincide with the proverbial Santa Claus rally? If it is over, this would mean another short opportunity, possibly tomorrow.Note
Was the recent week long rally part of another large bear trap? Let's see if the price reaches that 2 year support level.Trade fermée manuellement
I'm going to close this one out. We almost made it to 60 at one point, and then this recent rally has run out of steam with a key reversal today. It looks like a tug o' war between the bears and bulls. The bears seem to be getting the upper hand as of today.
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