AMD needs a pullback

AMD started downtrend from ATH 59 level and created a new bottom at 37.64 thereby completing ABCD pattern on 3/18/20. It has since started a new impulse trend respecting ABCD harmonic pattern with fib levels acting as resistances. On March 30th, AMD completed 0.5 fib retracement 48.02 to complete wave B without going through a single pullback, therefore, it had to retrace back to 0.38 and 0.23 fib levels to complete wave C. Wave CD is supposed to be completed at 127.2% or 51.16 but AMD pumped on low volume today( even AH) along with many other NASDAQ stocks. I was expecting AMD to retest the trendline before breaking out of triangle but this market is not following logic or common sense lol. If AMD breaks 51.16 level tomorrow, the next level of resistance is 0.78 fib level (54.47) but gapping up there without retesting the trend is makes it look very very overextended and short waiting to happen. IDK why the market is rallying when unemployment numbers are sky high and demand for consumer products falling ( especially electronics) but I am not bringing fundamentals into this analysis. Let's see where we open tomorrow- If we gap up, we have a level at 52.85 gap-fill above so maybe that is a good level to start a short position. If we open red, I will consider adding 4/24 puts at the break below 49.5. Good luck trading tomorrow!



Disclaimer: The above thoughts are my own and should not be considered as investment advice.