Advanced Micro Devices ($AMD) is up more than 2.5% on the debt issuance news. Readers will see that AMD hit resistance through June and July at close to the same level. The shares also found support at the 38.2% Fibonacci retracement level of the March into July rally. This has created what we call a basing period of consolidation or “flat base.” The stock can break in either direction out of these patterns, but in my experience, they have tended to be patterns of continuance. In this case, that would be bullish.
The upside pivot remains the 50-day SMA. Relative strength is still non-committal, but the daily MACD is starting to look a lot closer to a more bullish posture across all three components. I am reiterating my $700 target price here.
Stephen "Sarge" Guilfoyle is the founder and President of Sarge986 LLC, a family run trading operation. An NYSE floor trader for over 30 years, Guilfoyle has served as the Chief Market Economist for Stuart Frankel & Co., the U.S. Economist for Meridian Equity Partners, and as a Vice President in Block Trading and Investment Banking with Credit Suisse over the years. Guilfoyle earned his nickname “Sarge” while serving as an actual sergeant in reserve components of the U.S. Marine Corps, and U.S. Army while simultaneously working on Wall Street.
He self-identifies as a day trader, long-term investor, and anything in between. He believes in removing the emotion out of the decision-making process and trusting the data. Look to Guilfoyle to prepare you for the trading day with his popular early morning Market Recon newsletter on TheStreet Pro, which provides a mix of fundamentals, technical analysis, economic commentary and trading ideas.
