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Advanced Micro Devices (AMD) At Support Area

Advanced Micro Devices $AMD has been falling when competitors such as $INTC and $NVDA are advancing - not a good look at least in the short-term. Last week, we noted that AMD might find support in the 10.50-11 area. But I think we should allow for some more elbow space to the downside.

AMD Daily Chart

(click to enlarge)

- While AMD might not be bullish at the momentum like INTC or NVDA, it should only be bearish in the short-term. In fact, the chart reflects a market that is "neutral" or consolidating sideways.
- If you believe this premise, then you would pay close attention to upcoming support levels, especially as the daily RSI dips below 30. 
- However, we should note that price failed to reach that 15-15.60 resistance area in October. A failure to reach a range resistance is often a sign that bears will have momentum to push it below support.
- So, we should allow for more elbow space, perhaps down to the 9-9.50 area. 
- Also, we should look for a RSI vs. Price bullish divergence.
- A conservative bullish target would be 12.40, while a slightly more aggressive one would be 15-15.60. 
- These targets are all within the consolidation scenario and does not require AMD to be bullish.