After AMD’s attempt at breaking out from a potential bull flag on the daily chart failed, two key paths are under observation. It’s crucial to emphasize that this is not a forecast or a trading plan but rather an analytical perspective on possible market behavior. The buyTheDip strategy was previously outlined, where two out of three buy orders have already been executed, with the possibility of the third still pending.
The chart presents two possible paths for AMD’s price action:
Path 1 – AMD finds support around the $109-$110 region and attempts to regain momentum for another breakout attempt. A confirmed close above resistance could validate a bullish continuation.Path 2 – The stock fails to hold immediate support and extends its pullback towards the $106-$103 range before forming a stronger base for recovery.This approach follows a layered buying strategy, ensuring a structured allocation at key support levels. The budget proportions must be maintained as outlined below. This AMD stock buying plan was already published on ForexLive.com (stay tuned for others) and 2 of the 3 buy orders were already filled, but the plan is still relevant for those that seek an opinion of 1 way to buy. At your own risk only, this is not financial advice.
Price: $111.08Position Size: 20 shares (16.67% of the budget)Total Cost: $2,222
Second Buy Zone
Price: $106.87Position Size: 40 shares (33.33% of the budget)Total Cost: $4,191Price: $101.38Position Size: 60 shares (50% of the budget)Total Cost: $6,083
Weighted Average Entry Price (WAP) for AMD Stock
WAP=(111.08×20)+(106.87×40)+(101.38×60)120WAP=frac{(111.08 times 20) + (106.87 times 40) + (101.38 times 60)}{120}WAP=104.13WAP=104.13
AMD Stock Stop-Loss Consideration
Stop-Loss Level: $95.80 (8% below WAP)Should You Buy AMD Stock?
The failed breakout has led to uncertainty, but AMD remains within a structured price range.Two out of three buy orders have already been executed in the buyTheDip plan, with the third potentially still active.The weighted average entry price, if all orders execute, is $104.13, with a stop-loss at $95.80.Both scenarios (Path 1 and Path 2) suggest watching key support and resistance levels before determining the next directional move.IMPORTANT: Stay tuned for updates, incluiding possible partial take profit targets for risk mitigation (if and when applies), within the comments below.
This article was written by Itai Levitan at www.forexlive.com. Read More Details
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