AMD Poised for Potential Breakout

AMD appears to be switching direction and showing signs of a potential recovery as it recently crossed the 150-day moving average. There is a strong indication for a target price around $187.

Different traders might see varying patterns in AMD’s price action: a double bottom (W pattern), a bullish flag, or a cup and handle – all of which suggest a similar price target around $187. Personally, I view it as a cup and handle.

However, before taking a position, I’ll be watching for a support test on the recently broken resistance line and for the stock to enter the gap. The current volatility, indicated by a high CCI, suggests that a retest could provide a safer entry point. Therefore, my stop loss will be set at the gap entry to manage risk, with a potential upside of around 10%.

What are your thoughts? Do you agree with the $187 target, or do you see a different pattern emerging?