AMD: The most important support level! (D&W charts)Looking at the daily chart of AMD, we can observe a Bullish Harami pattern emerging just above the 61.8% Fibonacci retracement level. This formation, often seen as a reversal signal, indicates that the recent downtrend might be coming to a halt. The price bounced off the 61.8% Fibonacci level, which suggests this area is a strong support. The next significant resistance is located at the 38.2% Fibonacci level, which is slightly above the 21-day EMA.
On the weekly chart, the long-term uptrend remains intact, supported by a well-defined ascending trendline. This trendline, along with the support at $132.83, has held through recent pullbacks, indicating that this level will be critical for maintaining the bullish structure. The 21-week EMA is still above the current price, acting as potential resistance, but if the daily bullish reversal holds, we may see a further move up towards $162.00.
In summary, the daily chart suggests a potential bullish reversal from a significant Fibonacci level, while the weekly chart reinforces the importance of the trendline and support at $132.83 to maintain the bullish momentum. AMD's price would need to lose its trend line on the weekly char in order to reject the bull trend. As long as it stays above it, the bullish bias will persist.
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Nathan.
