Advanced Micro Devices, Inc. operates as a semiconductor company worldwide. The company operates in two segments, Computing and Graphics. We have been watching AMD stock very closely lately after it broke all-time highs a few weeks ago. As supply and demand traders, we must ignore the fundamental stock analysis and focus on what really matters, the type and strength of the new imbalances created in a clear trending market. That’s what AMD has been doing for quite a few months now.
Take a look at the monthly timeframe analysis attached below. A very strong imbalance has been created around the $59 price level. We expect AMD stock to keep on dropping, attracted by the strength of that impulse. That will allow shorter-term traders to sell shares of AMD in smaller timeframes or even use other stock trading strategies different from the supply and demand stock strategy.
The monthly imbalances around $59 per share seen below is a much longer-term potential purchase, it could take some time for AMD stock to pull back down there, and it might return with a different trend. We’ll be watching this one closely and set our alerts.
As supply and demand traders, we do not need to pay attention to the news, fundamentals or any earnings reports. Once a big timeframe imbalance has gained control, earnings do just the opposite and react strongly to those imbalances. Why is it that you see positive earnings, then the underlying stock drops like a rock, or a negative earnings announcement and the stock rallies like a rocket out of control? You are probably missing the fact that there are big imbalances in gaining control.
Unless you are doing very short-term trading and scalping, you should not worry about fundamentals or earnings announcements on AMD stock.
You can use these imbalances to plan your trades in lower timeframes. Trading is just waiting for the right trigger points and scenarios to present themselves, this game has got a name and it’s called the waiting game. We need to patiently wait for the correct scenarios and setups to happen and wait for the price to pull back or dip into the price levels we want to trade, in our case these price levels are made of supply and demand imbalances.
Join our supply and demand stock trading course if you want to learn how to trade using our supply and demand trading strategy.
There are several ways of buying stocks and futures. When trading stocks, you can buy shares of the underlying stock or use options strategies to go long or short at these specific supply and demand levels, long calls or long puts or spreads. You can even buy a CFD (contracts for difference) on AMD if you are in a country where it’s allowed.
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