AMD Daily - EWT Investing

AMD – 2018-01-03 – Technical Analysis with Extended Elliott Wave Theory

The stock of the processor manufacturer AMD (Advanced Micro Devices Inc.) has risen considerably yesterday, possibly related to the ongoing – and for now, still veiled in some secrecy – security problem that seems to be affecting some Intel processors, in addition to its own merits.

I thought this might be a good time to have a look at AMD, and see what the charts say, using my favourite analysis tool, which is my own Extended Elliott Wave Theory. This is a free analysis update.

Now, before we have a look at the charts, it’s first of all important to mention that Elliott Wave Theory in general, regardless of which variant one may use, is best suited for financial instruments with wide participation (both in terms of traders, types of traders, and the amount of capital being traded), such as stock market indices, commodities, and with some caveats, currency pairs. It is less suited, generally, for single stocks.

With this caveat said, let’s have a look at a Daily chart of AMD. Click the chart to open a full-size version:

AMD Daily - EWT Investing

For reasons I won’t get into here, I think that the end of the previous corrective pattern should be placed at the lows of February 2016. From there, I think it’s quite reasonable to count AMD having conducted waves (1) to (3), of a possible impulse pattern.

If true, AMD seems to now be locked in sideways corrective wave (4), which seems to develop into some sort of triangle. If true, wave (c) has probably ended in early December 2017, with wave (d) of (4) now possibly having commenced. If true, wave (d) has a very good chance of moving towards the $14.15 price level, at which point wave (d) has fulfilled some minimum criteria, plus, the gap from October 2017 will also have been closed. Price gaps are often closed sooner or later.

So from a wave structure perspective, I think there’s a reasonable chance that the AMD stock might trade towards at least $14 over the next few months. There’s also a possibility that wave (c) is still unfolding, in which case, the stock might first decline somewhat from these price levels, before starting wave (d). It looks less probable, but cannot be ruled out. (Actually, nothing can ever be ruled out in the financial markets, ever.)

Fundamentally, the company is making minor losses according to the latest data I have available at this time, with an EPS of -0.08 according to Yahoo Finance.

I’ll (almost) end this analysis update by noting that I will likely initiate a minor position in the stock soon, so by the time you read this, I might already stand to profit from other buyers stepping in to bid up the price. Also, please read the disclaimer in the footer.

Carl Malmberg on FacebookCarl Malmberg on TwitterCarl Malmberg on Wordpress
Carl Malmberg
Carl Malmberg
Technical Analyst at EWT Investing
Carl has analyzed and traded the financial markets 14+ years.
Developer of the Extended Elliott Wave Theory, a series of extensions made to the original Elliott Wave Theory.