AMD : BUY THE DIP ?
- Share prices of the microchip giant have been trading above a bullish trend line since the end of October, the long-term trend is therefore bullish.
- We can easily observe that prices follow phases of bullish impulse and bearish corrections, entirely symptomatic of an healthy bullish trend.
Correction phases allow the market to take a break, take some profits and test newly established support levels, before registering new highs thanks to dip buyers.
However, we can see that during the very last bullish phase, which led prices towards $227.50, the market registered its strongest acceleration since the start of the trend.
This acceleration took the market far above its bullish trend line, before registering a sharp pull-back.
The Ichimoku indicator remains in a bullish configuration, but the market has already given a bearish alert by breaking its Kijun line.
- This movement may be difficult to interpret for traders.
While the bullish trend remains valid for the moment, the strong excess recorded recently must be corrected and could even spell the end of the trend.
It is still too early to talk about a bearish reversal, but it will be interesting to see how the market reacts to the impact on the first significant support zone at $184.00. This level should also represent an interesting test for the Chiko Span on its Kijun.
If this level ever drops, the situation will become terribly dangerous for the asset on a technical level.
Indeed, breaking the last peak is never a good sign in a long-term bullish trend, especially since the only remaining support would be represented by a trend line that has already been well hammered, as well as an extremely thin ichimoku cloud.
Will the market bounce back over $184.00 and return to new highs?
Is a reversal underway?
To be continued...
Pierre Veyret, Technical Analyst at ActivTrades
The information provided does not constitute investment research. The material has no been prepared in accordance with the legal requirements designed to promote the independence of investment research and such is to be considered to be a marketing communication.
All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acing on the information provided does so at their own risk.
- We can easily observe that prices follow phases of bullish impulse and bearish corrections, entirely symptomatic of an healthy bullish trend.
Correction phases allow the market to take a break, take some profits and test newly established support levels, before registering new highs thanks to dip buyers.
However, we can see that during the very last bullish phase, which led prices towards $227.50, the market registered its strongest acceleration since the start of the trend.
This acceleration took the market far above its bullish trend line, before registering a sharp pull-back.
The Ichimoku indicator remains in a bullish configuration, but the market has already given a bearish alert by breaking its Kijun line.
- This movement may be difficult to interpret for traders.
While the bullish trend remains valid for the moment, the strong excess recorded recently must be corrected and could even spell the end of the trend.
It is still too early to talk about a bearish reversal, but it will be interesting to see how the market reacts to the impact on the first significant support zone at $184.00. This level should also represent an interesting test for the Chiko Span on its Kijun.
If this level ever drops, the situation will become terribly dangerous for the asset on a technical level.
Indeed, breaking the last peak is never a good sign in a long-term bullish trend, especially since the only remaining support would be represented by a trend line that has already been well hammered, as well as an extremely thin ichimoku cloud.
Will the market bounce back over $184.00 and return to new highs?
Is a reversal underway?
To be continued...
Pierre Veyret, Technical Analyst at ActivTrades
The information provided does not constitute investment research. The material has no been prepared in accordance with the legal requirements designed to promote the independence of investment research and such is to be considered to be a marketing communication.
All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acing on the information provided does so at their own risk.
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