I'm reiterating my short position on AMD after confirmation of the bearish Head & Shoulders formation ahead of earnings & downgrade by Barcley's. I would advise that potential buyers beware and stay away until after-hours on July 25th. AMD saw nearly a quarter of its market cap wiped out after what was perceived to be a positive earnings release in Q1 but lukewarm guidance. Therefore AMD would need to blow expectations out of the water to justify re-entry at current price levels which are similar to pre Q1 earnings release levels. Another positive earnings release with lukewarm guidance is enough to send the stock down again and entry at current price levels would result in substantial losses, as such I would advise that potential bulls beware and only enter after confirmation of bullish sentiment following the earnings release.
I see immediate pre-earnings price targets at 12.5 and 12.
definitely not a head and shoulders. Its clearly trading within its range. There is a clear support here. I think earnings may surprise you. Tread carefully with your short
therancher
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I' concur on possibilities, but do not see the head and shoulders. 13-12.95 is a strong support imo. To me the issue is the right channel into earnings it makes for a sharp move up or down.problem is with a strong resistance at 14.40's not enough upside could change though. Biggest wrench was the Barclays downgrade, 33% WOW! I didn't disagree either and I like AMD. It's almost deja vu. One has to think was this another retail vs institutional scenario. Sadly it's turning into the craps table once again. If it tanks earnings earliest entry imo is 11.30-11.40
lmakesmoney
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H&S or double top? It's currently trading within its channel, only breakout I see from that is earnings on 25/07. As you mentioned AMD comes from poor Q2 guide (so expectations are already lower) and issues with being a small player within its sector, while bulls see upside both in EPYC (which is priced in), Ryzen and crypto mining, plus management. I would say its a toss up on earnings and could go either way, but definitely not enough conviction to short. Could very well see a reversal once it hits $13.
KalMoam
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@lmakesmoney, I'm only shorting it until the mist clears after earnings. Will have to re-evaluate after that but from where I'm sitting it's definitely heading down until earnings. Remember, I've been long at 12.5 and exited at 14.3. It came very close to doing a double top and it's on its way to do a double bottom in my opinion.