Anticipating Upside In AMD
by Mike Paulenoff
June 30, 2024 • 12:09 PM EDT
On the morning of June 20, Mike Paulenoff posted a heads-up about AMD to MPTrader members, writing:
"AMD has been upgraded this AM by Piper Sandler with a Target Price of 175. Piper reiterated its OverWeight rating and has made AMD its top big-cap pick for the remainder of 2024. Technically, AMD has its challenges and its work cut out for it to climb to Piper's 175 target. My attached 4-hour chart setup argues that for starters, AMD needs to climb above 158.60 to gain initial traction for a run at the next higher resistance levels of 162.50 and 164.85... At the moment my May-June pattern work has the right look of a completed major correction at the May low of 141.00 followed by the first upleg in a new bull or significant counter-trend period that has as its first high 174.55 (5/22/24). If the May low is violated, my current positive view of AMD's technical set up will be invalidated, and AMD will point to 120-123... Last is 155.81..."
Fast-forward through last week's strong price action in AMD into Friday morning (June 28), when Mike followed up with this technical message for MPTraders:
As long as any forthcoming weakness is contained above key support from 155.50 down to 153.34 (see may attached 4-Hour chart), my May-June pattern work argues that AMD is in the grasp of a new bull phase off of its May 1, 2024 multi-month corrective low at 141.00, and is poised to challenge nearest key resistance at 164 to 167. If the resistance is taken out, AMD will project higher to test its 5/28/24 high at 174.55 where the stock will be positioned to trigger an intermediate-term upside reversal signal... Last is 162.85...
During Friday's morning session, AMD hit a recovery rally high at 166.45, up 6.8% from Mike's first heads-up on June 20, closing the week at 162.21, preserving key May-June support levels.
What's ahead for AMD? As long as the support levels remain intact (see Red demarcated support zones on Mike's 4-hour chart), AMD has the right look of a bottoming period and pattern in the aftermath of a major correction (227.30 to 141.00) within a longer-term, dominant bull phase that originated at the October 2022 low of 54.57.
Login this week to join Mike and MPTraders for their ongoing opportunistic technical and fundamental discussions about AMD, NVDA and AI company setups, as well as many other individual equities, sector ETFs, macro indices, Treasury bonds, Precious Metals and Bitcoin.
Mike Paulenoff is the author of MPTrader.com, a real-time diary of his technical analysis & trade alerts on
ETFs for precious metals, energy, currencies, and an array of equity indices and sectors, including international
markets, plus key ETF component stocks in sectors like technology, mining, and banking.
Sign up for a Free 7-day Trial!
More Top Calls From Mike
This week's selection for our Top Call -- VZ (Verizon Communications) -- is less a function of its recent success and more a reflection of Mike's technical setup work that projects gains in the days and weeks ahead. On June 17, one of our MPTrader members (FJB) alerted us to his fundamental work on VZ. After seeing his positive comments, Mike Paulenoff posted the following technical interpretation of the pattern setup:"... somewhere above 36.
On the afternoon of May 7, 2024, ahead of earnings the next morning, this is what I discussed with MPTrader members about a forthcoming opportunistic technical set in UBER (Uber Technologies):UBER reports earnings tomorrow morning before the opening bell. My Big Picture setup suggests strongly that the bull phase that commenced in June 2022 at 19.90 still has unfinished business on the upside into the 90-100 target window.
This coming week is filled with consequential macro and micro "events," such as NVDA's 10 for 1 stock split, CPI, PPI, and TSLA's annual meeting, during which shareholders will vote to approve or reject Elon Musk's 2018, $56 billion pay package.Arguably, the most significant "event" for the technology sector, in particular, and for the major equity indices is Apple Inc.'s WWDC Conference, which begins tomorrow.
On Thursday May 23, with IWM trading at 203.19, Mike Paulenoff responded to an MPTrader member about his read on the IWM (Russell 2000 Small Cap ETF), writing:"Bottom Line: Compared to the SPY, IMW is terribly weak, but in isolation, from my BIG Picture pattern perspective, IWM is gearing up for a rip-roaring advance after current weakness exhausts itself.
During the pre-market hours of May 8th, 2024, this is what I posted about SLV (iShares Silver Trust) to our members at MPTrader.com:Time to focus on Silver (SLV) again for the initiation of a new upleg after the completion of a three-week pullback right to a successful test of 12-month support (see my attached charts), followed by an upside pivot reversal that has the right look of a resumption of the bull phase from October 2023.