Chart of the day

Where do we stand fundamentally?

Gaming and PC Market Efforts: AMD continues to focus on competitive offerings for gaming and general-purpose computing, including its newly launched Ryzen AI Pro 300 series processors for commercial PCs, underscoring its commitment to innovation in both consumer and enterprise markets.

AMD's strategic moves aim to strengthen its position in the CPU and AI accelerator markets while addressing competitive pressures from rivals like Intel and NVIDIA.

AMD is testing strong upside support of 135 after reaching a possible medium-term peak of 225 and breaking below 165. We need to see a breakout lower for a deeper pullback in the fourth wave before a finish in the fifth wave. I expect a deeper pullback here in the fourth wave of the five waves long-term for a retest of the 100-105 zone of a previously broken strong upside resistance before a continuation higher.

We are in the development of the fourth wave short-term before a rally higher in the fifth long-term wave. Before an extension higher we could see a pullback from here in the short term if we get a break below 135. Invalidation of a swing lower will happen upon a bounce and a confirmed break above 165.

_{Try a short trade entry with a stop loss above 155 to target 90 or trade it with options like in the example below.}