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When to Short AMD: Playing Devil’s Advocate

Despite the impressive 36% bull run, AMD is still trailing behind NVDA for the year, which is up 60% YTD. It’s also trading about 50% down from its all-time high of $161.91 recorded on November 29, 2021.

If the double top pattern over the past two months is an indication, then AMD’s 9-week bull run could be coming to an end. AMD had already started to pull back from the 2023 highs of around $88.9. Given that it has failed to break above its resistance, the pullback could go into a full reversal.

In the near term, a drop below AMD’s current 4-hour pivot point could result in a bearish reversal bottoming out around $71.5. In this case, one could short AMD below 78 with partial targets at $74.95 and $71.5. $Advanced Micro Devices (AMD.US)$ $Direxion Daily Semiconductor Bull 3x Shares ETF (SOXL.US)$
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