Chart of the day

Where do we stand fundamentally?

AMD introduced its RDNA 3-based Radeon RX 7000 series GPUs, featuring advanced architecture and improved gaming and content creation performance. AMD completed its acquisition of Xilinx, a leader in adaptive computing, enhancing its portfolio with FPGA (Field-Programmable Gate Array) technology.

AMD is reaching strong downside resistance at 105. This is strong near-term resistance for a downside continuation in the fourth wave pullback, which can target 75. A break above 125 can invalidate this view and lead to an immediate extension higher marking the end of a fourth wave pullback.

We are in a possible fourth wave finish here, and to confirm that, we need to see a bounce and a break above 125 until then we are still in the powerful third wave. A breakout below 105 will lead to a downside extension to 80.

_{You can take a near-term short-trade entry with an SL above 126 to target 80 and lower. You can trade it with options as well by buying put options.}