If you're looking to escape the "meme" and momentum world, perhaps I could interest you in a little Advanced Micro Devices ( AMD) . I don't envision a push away from the momentum of the meme stocks to mean risk abandonment. Instead, I'm guessing more traditional tech may get some love once again.
AMD has already seen a strong bounce from those recent lows in May, we've seen a period of consolidation on the daily chart that is setting up strong. The pullback over the last two weeks has created a bullish flag pattern. Shares are testing the resistance of the flag. A close over $81.75 will be a trigger for more aggressive traders. If you like to see a cleaner break, then I would wait for a push over $82. We don't have secondary indicators leading right now, though, so price will be key.
Additionally, I would prefer to see secondary indicators like the Full Stochastics and MACD trigger along with price. We may need another day or two of strength to see the parabolic stop-and-reverse (PSAR) flip back to the bullish side. The upside here points to the $85-$86 range.
For longer-term traders, the weekly chart is also close to triggering a big upside breakout. We'd likely need a close over $82.50 on Friday to trigger both the 20-day simple moving average (SMA) as well as a push above resistance. I like seeing the strong push on the StochRSI ahead of the breakout, as well as the recent bullish crossover on the Full Stochastics. I don't think we can classify that as a bullish divergence; however, it should confirm the price action. A breakout on the weekly chart would target upside in the $90 to $92.50 range.
As semiconductor shortage continues to work its way out of the system, the technical setup for AMD looks ready to reward the bulls. All that is needed is a little push now or Friday. I believe this market requires patience and triggers rather than anticipation in the large cap names, so keep a close eye here.
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