3 main time frames when looking at $AMD
1) Near-term Time Frame: Still in confirmed uptrend per the hourly time frame, but concernably under pressure. There are caution signals per negative RSI divergence showing it's hand on the hourly & 30min time frames. That divergence is strong on the hourly
2) Intermediate Time Frame: Confirmed uptrend on the Daily & Weekly chart still show pullbacks being bought. Mild RSI divergence on daily time frame.
3) Primary Term Time Frame: Weekly & Monthly chart show confirmed uptrend but with concern as several momentum indicators are peak overbought and look ready to squeeze into bearish crossovers.
We use several forms of analysis to help guide a forecast thesis on any stock, from classic technical analysis to our BotTrigger algo trend signal being the most prominent. Right now the trend signal on AMD is showing confirmed uptrends on the 3 time frames highlighted above. But for an active trader, it looks like there is an opportunity to consider a short position on the near term time as we're starting to see both a double top
First off, here are the algo buy/sell signals on the hourly, daily, weekly, & monthly time frame.
And here is another view on the hourly time frame showing a potential double top as equal prices stall on lower RSI values. This is a form of classic bearish/negative divergence, when we get equal or higher prices that transpire in a lower RSI environment.
The daily chart also shows bearish divergence on RSI values, however a bit more mild then the aggressive decline in RSI that shows up on the hourly time frame. For an active trader there is evidence to suggest that the near term time frame is under pressure.
And lastly, backing up to the big picture view, here is another macro view of the primary term time frame showing the monthly chart. We can see the correlative relationship of what happens when a squeeze starts to occur on stochastics (middle panel indicator) when the red line starts to cross below the blue line we start to see an increase in selling aggression. This is further confirmed when you see MACD histogram (bottom panel) begin to stair-step down from the month prior. Although the MACD histogram is a delayed indicator, history here suggest that anytime we've ever seen negative month over month value on the histogram, coupled with a bearish crossover on Stochastics, the stock has always seen lower prices to follow as the next bear cycle gathers steam. Howeve, right now we do not have negative month over month value yet.
Again, the histogram will input it's result after the damage has already been done. So it's slower than stochastics.
