Here’s the pattern I see on $AMD – September 5, 2023
This is Scott with your Chart of the Day. I want to show you the pattern that I am watching develop here on AMD ( NASDAQ: AMD ), Advanced Micro Devices.
This stock has been chopping sideways since June, drifting sideways and down. We are currently under the 50-day moving average, but the moving averages are starting to converge here, and that is what I like to see.
Now, the 200-day moving average is still down here. It is technically a bit far from price, but I think what could happen with this stock is, if we continue to consolidate sideways here we could break out of, what I think is a potential wedge pattern developing. Where we go down but we tighten up, tighten up, tighten up.
Throughout September we continue to tighten and then here we go October, or “Uptober” we break out, do it on volume, and it comes right off that 200-day moving average, giving that time to catch up to price.
That is what I would love to see develop here on AMD ( NASDAQ: AMD ). I don’t know if it is going to happen, but if it doesn’t, then all we would want to see, from this standpoint, is a breakup out of this clear level of resistance that the price keeps bumping up against.