AMD is coming up on an important week. Lately it has ran to test resistance at 96 and the selling pressure, combined with a small marketwide selloff, caused the stock to break under support at 91.70 and gap down to support at 87.50, off of which we have seen a solid bounce. Good potential on both sides here with a run to all time highs seeming likely, but a looming head and shoulders pattern best visible on the Daily and weekly.
Other areas of note is that we have gapped down under the 10 day MA, as well as the daily chart MACD heading towards a bearish convergence.
TRADE IDEAS:
CALLS:
Risky Entry: Break and hold over 96
Entry: Break and hold over red trendline
Contract: AMD 7/23 97c
PT: 98, 99, 100
Lotto PT: 102 105 110
Stop Loss: Break and hold under 93
Re Entry on Stop Loss: Same as first entry
PUTS:
Entry: Break and hold under Blue trendline
Contract: AMD 7/23 89p
(Will most likely be ITM at purchase to give more breathing room for bounces)
PT: 87.45, 85
Lotto PT: 82.5, 80, 78, 72.75
Stop Loss: Break and hold above blue trendline with strength
Re Entry: Same as original entry
Not financial advice
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