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AMD - Take Profits or Hold?

Many investors are going to have a tough time deciding what to do with their AMD holdings.  The monster hold of the last 16 months, going from $2 to $15 in a little over a year.  Many are hoping that AMD will run back up to its $42 range of several years ago and it may well do so but even with it holding the status of the number one investment Stock play it has been showing weakness.




In the weekly bars Chart we can see that this run is not much more than a third of its previous level shown earlier in the chart.  

Looking at the upper daily bars chart, however, it dropped out of its 16-month red channel on Thursday.  This happened back in November also and AMD recovered and regained the red channel but it was with the help of a fierce year-end push in the Stock Market.  However, this trendline failure in AMD is different because we are seeing the geopolitical risks on the stock market escalating at an alarming rate.  Anyone that got in at AMD's base at the $2 area and is now sitting on a six bagger will likely sell now.  Those who got in late will be less inclined to do so.

In the top right 210 minutes bar chart we see the year-end rally shown with the brown channel and the two-month horizontal move in the blue channel with AMD failing both.

Nonetheless, AMD has not only been the leading stock but also the stock market sentiment indicator for the past sixteen months and it seems to be turning sour quicker than anyone might have imagined.  

Trade well my friends

Alan


This post first appeared on The Stock Market Viewpoint, please read the originial post: here

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AMD - Take Profits or Hold?

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