To The Moon

At the CES 2024, $Advanced Micro Devices(AMD)$ had brought the PC race in the world of desktop computers to a new level with AI. AMD has debut what is said to be the world’s first desktop processor with a dedicated neural processing unit (NPU).

This new AMD’s upcoming Ryzen 8000G series chips, which will be available on the market 31 Jan, the NPU is designed to handle AI-based tasks on your desktop computer without having to send data to the cloud.

This will help individual developers who are running smaller workload a great help. I foresee that the acceptance of such PC would be huge. In this article I am going to share how I went on to check the technical for AMD and prepare for a trade for AMD with a profit of 1 dollar per share.

Technical Indicator - 20-day MA (Trading Above indicate Upside Strong)

I went to check the 20-day MA and saw that AMD have been trading above it, this mean that AMD has not been experiencing any pullback when 2024 starts.

This is a good signal for short term upside for AMD.

Technical Indicator - Average Directional Index (ADX)

If we look at ADX 14 days, we can see that AMD is trending into strong trend and with +Di above -DI suggesting that bullish upside is coming.

Though we could see a dip in ADX 14, but it should give us an opportunity to trade.

How I Trade With RVI and ADX (Price Action)

I monitor AMD price action for 09 Jan, and saw that ADX is keeping near 40 but RVI is pretty wild, there have not been any potential until after 1pm.

I prepare for a LONG position and set my STOP Loss position when there is a slight move down of ADX from 40, but still staying above 40. RVI remain above 50 though.

The next step to prepare for exit is when RVI is showing sign of dropping down from the 50s.

Overall, this is a short trade with a 1 dollar profit per share.

Summary

Based on positive news and technical indicators giving strong signals, trading with price action monitoring, enable me to use RVI and ADX to find the entry price and also when to exit before we saw the price trending downwards.

Overall this is a good short trade with price action monitoring.

Appreciate if you could share your thoughts in the comment section whether you think AMD could have more upside in days to come, I believe with the release of new AI NPU for PC, it would be a different game play for AMD.

@TigerStars @Daily_Discussion @Tiger_Earnings @TigerWire appreciate if you could feature this article so that fellow tiger would benefit from my investing and trading thoughts.

Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.