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July 3 Chart of the Day - AMD

Precision oriented price action technical analysis by far provides the best edges and most setups for traders and investors across the markets so that's what we use for the basis of our reviews

Advanced Micro Devices (AMD) and NVIDIA (NVDA) are often mentioned in the same breath however AMD is quickly and often positioned as the "little brother" when it comes to AI chips.

When we last featured AMD a little more than a year ago their stock was trading in the $130 area and since went on to make new $227.30 all time highs (ATH) this past spring.

Don't you wish you followed us then?

Given the speculative and fast growing nature of the AI industry we wanted to review the AMD chart again from a price action technical analysis perspective.

We have featured over 220 Charts of the Day during the past year and teach Price Action Trading for FREE  to traders who join our Highly Rated Trade Room.

Monthly Chart 

AMD monthly price action technical analysis review

On the monthly chart we've used one of the most prolific price action tools and that is Fibonacci. 

Often times it is thought that charts need all types of studies, indicators, or "secrets" to identify levels of interest.  Clearly we can see that's simply not the case here.

After setting its ATH price fell over the next few months melting through potential support levels as investors likely were cashing in profits.

The bulls recently stepped in around the $140 level pushing price back up towards the $165 area however price has yet to definitively make a higher low and higher high since ATHs.

Weekly Chart

AMD weekly price action technical analysis review

 
On the weekly chart we can see with much more clarity where price briefly shot up over $225 then promptly reversed starting a downward move.

Trading at $163.15 earlier today price has been teetering around a pretty significant previous support/resistance in the form of previous ATHs.

Price is sitting in an area seemingly with a potential decision to make.  Could price leap back to the upside to test ATHs or will it continue to slide to the downside?

Only time will tell for sure what price will do next...

We've layered in traditional support/resistance levels as well as an additional trend line to help identify potential price levels of interest and/or future price targets.

Armed with precision oriented charts like these both traders and investors can formulate their respective plans.

So what's next? 

We don't make predictions...

Nobody knows for sure but using these 5 price action tools traders and investors can develop levels of interest in both directions.

  1. Support/Resistance
  2. Trend
  3. Fibonacci 
  4. Supply/Demand Zones,
  5. Change Control Zones

ChartPros provides the exact methodology in its price action technical analysis courses to create charts like this with the most precise and accurate levels from which investors and traders can formulate their respective trade plans.

Take a look at the charts and let us know what you think.  

We'd like to hear from you in the comments sections.

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