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Bullish on AMD; but anticipate correction first

AMD was one of the gems I missed. Essentially missed a 50%+ in a month move. BUT, I want to keep stalking it to see if there are more trading ideas. 

AMD Daily Chart 4/22

(click to enlarge)

In should be noted that AMD was bearish since late 2014 and into the summer of 2015. However, towards late 2015, we saw price hold above 1.60. This was key because 1.60 represents a low going back to 2008. This was no doubt a critical support, below which I would be concerned about AMD. But above 1.60, I believe the market still has confidence in AMD. 

Now, we saw the first pop at the end of the year, after which we saw a very deep retreacement to 1.75. I want to emphasize that such a deep and sharp retracement that fails to clear the previous low is an indication that bulls have won the battle at 1.60. 

Then, we saw further evidence that bulls are gaining control. Now, the overall picture is still neutral because price failed to clear above 3.0500. There is a bearish correction right now. I would say that if price can hold above 2.20, AMD is turning bullish. A break below 2.20 would keep AMD neutral, in which case I would only look to buy around 1.90.

But, if price holds above 2.20, we should consider buying with upside to 3.0500, and then 4.00, which was the "average" price throughout 2013 and 2014. 

The thing is, I am not sure if price can retrace back to 2.20 if AMD is indeed turning bullish. That is to me the last line of defense, but the first line might be in the 2.40-2.50 area. If price stalls in this area, and the daily RSI is holding above 40, I would get ready to a bullish continuation attempt. 

If your target is 4.00 and stop is something like 1.90. You are risking under 25% for a 50%+ reward in 2015 horizon.