AMD Breaking Out Of A 20-year Base?

April 14, 2020

Did you notice how shares of Advanced Micro Devices are trying to finally break out of this 20-year base?

This is a long-term candlestick chart I brought up on our Monthly Conference Call last night. I used a line chart just to show how clean it is.

The "Multi-decade breakout" thesis is only valid if we're above those 2000 highs. If not, then by definition, it's not a breakout.

That level for me is $44:

Click on Chart to Zoom in

I like this chart because I focused in on the daily candlestick chart, so you can see what's going on here today, but within the context of the longer-term trend.

$44 is my level. If we're above that, then I can't think of a reason not to be long. $70 is the next target.

If we're right, that's a really big move. If we're wrong, the risk is incredibly well-defined and minimal, particularly relative to the potential reward.

That's what we look for. We also outlined this trade idea in a recent post which our Premium members can read here.

AMD Breaking Out Of A 20-year Base?

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