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Bullish Divergence

AMD Nears Multi-Month Support, Higher Risk for ShortsPrimary Chart: AMD's YTD Parallel Channel and Short-Term 2.5 Month Parallel Channel This post will provide only a brief update to the more detailed technical discussions of AMD from last week. The more detailed technical analysis is contained in a pair of AMD posts linked on the Primary Chart above. 1. Nothing has changed with regard to AMD's larger downtrend structure. As discussed in last week's analyses, AMD remains in a severe downtrend that has shown no evidence of structural change. 2. Last week's discussions identified a false breakout above the shorter-term down trendline, made especially clear by a Pinocchio bar with a long shadow protruding above this trendline. This foreshadowed the large decline that ensued the next day, with the stock gapping down significantly. Since the Pinocchio bar was identified, the stock has plummeted another -15.0% to -17.1%. Isn't it interesting that when stocks are in a trend in either direction, they can go higher / lower than expected? Stocks that seem very low in a downtrend seem to find their way ever lower. 3. An extremely sharp bear bounce could occur at any time . Just look at the prior rallies in the chart below this paragraph. Many of these bear rallies rise nearly vertically from the lower line of the channel (called the return line). This is typical of bear rallies. They tend to be some of the strongest rallies that happen in markets, and this bear market has been a fascinating learning experience (even if painful for longer-term investors) as these rallies and declines unfold. Supplementary Chart: Measurement of Prior Bear Rallies and Bounces YTD 4. Just because bear rallies can happen doesn't mean that every time the lower channel is tagged that a sharp rally will ensue. But a bullish divergence has formed on daily RSI , meaning that as price made new lows, RSI made higher lows. But a bullish divergence can be erased by price falling rapidly to a new low and pulling RSI with it below its prior RSI low. So it's better to wait for confirmation from price. 5. The lower edge of the parallel channel on Primary Chart shows where price could reach in October 2022. This level ranges from about $55 to $51 over the course of this month. The critical question for AMD is whether (i) price will accelerate its downtrend even further by breaking below this line or (ii) whether AMD will reverse there for a sharp bounce back into the channel. One other alternative is that AMD could whipsaw below the line for a few trading days in an extreme exhaustion move, then snap back above the line, signaling an intermediate term rally. Having identified the key levels that may affect the price action, SquishTrade will not attempt to make bold predictions of either (a) a break below the trendline, or (b) a key reversal that leads to a sharp trip back to the top of the channel. Much will depend on the FOMC minutes and CPI this week and their affect on the interest-rate environment. Given the environment (a severe downtrend) and the levels shown, traders and investors can make their best call with tight stops in place that measure and limit risk—risk is inherent in every trade or investment which is why stops are important for everyone except Warren Buffett—or even better, they can wait patiently for a trend-based setup at resistance. ________________________________________ Author's Comments: (1) Thank you for reviewing this post and considering its charts and analysis. The author welcomes comments, discussion and debate in the comment section. Shared charts are especially helpful to support any opposing or alternative view. (2) This technical-analysis view does not constitute a trade recommendation or trade setup. Instead, it attempts to offer technical commentary that describes and analyzes price levels, trends, price action, or the broader technical environment as of the publication date. Technical-analysis commentary does not equate to trade setups or recommendations. Within a given price environment, traders bear responsibility for their own trading strategy, risk tolerance, and time frame, and for any due diligence associated with such trades. (3) This technical-analysis viewpoint could change at a moment's notice, e.g., when price violates a key level of invalidation for a particular view. Further, proper risk-management techniques are vital to trading success. (4) To the extent countertrend price moves are discussed, consider that countertrend or mean-reversion trading, e.g., trading a rally in a bear market, remains higher risk and lower probability even for the most experienced traders and investors. DISCLAIMER: This post contains commentary published solely for educational and informational purposes. This post's content (and any content available through links in this post) and its views do not constitute financial advice or an investment or trading recommendation, and they do not account for readers' personal financial circumstances, or their investing or trading objectives, time frame, and risk tolerance. Readers should perform their own due diligence, and consult a qualified / licensed financial adviser or other financial or investment professional before entering any trade, investment or other transaction.
NASDAQ:AMD
by SquishTrade
31
KOKUSDT: Bullish Bat with 3 Bullish TargetsWe have a small amount of Bullish Divergence here after Breaking Out of Falling Wedge at the PCZ of a Bullish Bat on the 4 Hour Timeframe. I will take profit at each of the levels depending on how price looks upon hitting each target though i may just hold it all until target 2. I feel a bit more confident about taking this trade due to the action we currently have on the TOTAL 3 Marketcap which seems to suggest that Lowcap Altcoins will be seeing nice markups. The TOTAL 3 Marketcap Price setup can be seen in the Related Ideas Tab below.
KLong
by RizeSenpai
In-Coming Stock Market Rally?Things have gotten very over-sold for the major indexes and the stock market as a whole but there are things on the macro charts showing that there are incoming winds of potential change. 4th quarter is always a major time for retail and earnings so these are possible factors as well but if we keep simply to the charts on the weekly, we will see that price action is stalling in terms of its ability to continue to the downside. When this occurs a simple way to check for possible seller exhaustion is by peeking at the relative strength index and comparing it to the price action on the chart. And in this case, we see bears putting in a lower low in price, yet on the RSI the reaction has been a higher low on the indicator. To sum this up, this is a signal, that at least in the short to medium term, the strength has shifted over to the bulls. The area to watch is the 3556 level. As long as this level holds look for a rally to 4000 in the coming weeks and months. This will be very difficult level to sustain price action above if a rally was to take us to this level any time soon so use this as a possible trade opportunity until more positive macro factors start to come into the picture in the meantime.
SP:SPXLong
by TradeVibez
✅️Bigger Picture: 🟩Eos Long Idea🟩▪︎Earlier we Looked At The #BAT pattern On The Eos/usdt pair, D Time frame,Now wanna Take a Look at The bigger picture. ●In This chart (W) we can See a Giant F.wedge Which Now we are at The bottom of it! Also It's considerable as #ABC correction.. And This bottom we are Now is 89% down which is Fib Number as you know. ☆So plan is That BAT pattern I mentioned Last Time at Daily (Which is almost complete) Break And It starts.. ¤There Are 2 options: 1.we Reach Through upper band of The wedge, without breaking and continuing The Pattern 2.Reach The upper band and Break It! -Either way Profit Is on a Bull Side,and Either Way Long is The only reasonable Option, So Just Give Bears a little Time To pack a 🎒 and We are Good to Go👍 Good Luck✌️
Long
by Paarham
6
$COIN swing call idea from end of Sept has NEWS to draw buyersThe description below offers an example of a chart story. When you regularly watch a stock and observe how price and indicators change over time, you can create a story that leads to well-planned and successful trade ideas. Between May and July price stalled and took its time to retest lows. While it did RSI was gradually rising. Eventually this led to a quick move up in price (August) and RSI tipped over 70. When RSI rises over 66.66 after being under 33.33, it is a sign that trend may be ready to change. Note this does not always hold true, as it is an advance sign that occurs before trend change confirmation. In September, there was a stochastic buy notice when %K rose sharply over 3 days (orange box and arrow). This is my most reliable early indicator of a directional move to come. It is typical for this early strength move to see a reversal. When price fell (white box) it stayed above the summer range, RSI held bull support zone (green line), and there was bullish divergence (white ovals). Before today's Google-related news spark, price broke the white downtrend line and held a higher low. Now, in the greater context of U.S. markets, I think a rally is imminent. As soon as there is a turning point up, COIN can at least move to 200sma. I am not long-term bullish on the stock right now; I see a nice swing call trade that can gain over the next few months if conditions support it.
NASDAQ:COINLong
by OptionsRising