|Advanced Micro Devices (AMD) is not an unknown company, unless you have only recently begun to trade stocks. AMD was one of the high-flyers of the dotcom boom, reaching a high of $48.50 per share in June 2000 from a low of $6.38 in August 1998. After the bubble popped, the price dropped to a low of $3.10 by November 2002. In more recent days, the rise of the share to $42.42 by February 2006 can therefore be considered justification of investing in a solid company. Now, AMD has once again given a buy signal. Is it worth buying at this high price?|
Figure 1 is a daily chart of AMD and shows an acceptable Elliott wave count.
|FIGURE 1: ADVANCED MICRO DEVICES, DAILY. This chart shows an acceptable Elliott wave count.|
|Graphic provided by: AdvancedGET.|
|The chart shows the rise from the low of $13.87 in April 2005 and is suggesting that the price is in a wave 4 correction with a flag formation. Wave 4 is projected by the Advanced GET software as bottoming either at $37.03 or $33.72 with a 65 PTI (65% probability) that the wave 5 target will be $72.78 (not shown). Should the price break above the upper resistance line, the flag pattern suggests a target of $50.34 (42.40 - 20.49 = 11.91 + 38.43 = 50.34). Of course, the flag could fall further in line with the GET prediction of a wave 4 bottom. This will reduce the target for the flag, and could change the GET forecast for the wave 5 target.|
|My chosen indicator is a stochastic 8,10,3, and shows that the trend could still be down, so wait for a breakout of the price out of the flag pattern, which could be a good buy signal.|
|This is a share that should be on your watchlist.|
|Address:||3256 West 24th Ave|
|Phone # for sales:||6042634214|
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