Two different Gann methods I applied to AMD that I want to share. Both are pointing to the same thing - if resistance breaks - buy it and if it holds for a new low then buy that...
This method is something Gann used call the "Square of a Top". Obviously you have to confirm a top is made and then apply this method, but from the high in AMD earlier this year at $100 that is clearly the case. Note the red arrows from the top and into the price action last week. That line marked the EXACT high and the stock respected it. So if I see a close above it, it likely means the next rally will unfold. The new low could be where the Green arrow and first green line coming UP from the inflection point comes in near the "IV" level (around $72). Let's confirm that with the next method - Gann angles...
I took the angles from the high at $100 and the angles from the March 23, 2020 low. Look how the red arrow near the "1x1" green angle coming down from the top acted as resistance - just like the Square of the Top in the first chart. I love when multiple methods tell you the same thing. Now look below at the big green arrow where the dashed "1x2" angle is coming up from the March 23, 2020 low. It is near the same level in the first chart that I said would be support - just above $72ish.
Also note from the angles coming up from the major low how the 1x1 angle in green marked important inflection points as did the 2x1 angle. This helps me know that the angles are insync with the stock and time and price are set properly.
So again, if we see a breakout we will buy as resistance will be confirmed to break and if a new low comes we buy that as major support levels are coming into play.
The Link LonkApril 18, 2021 at 07:44AM
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Gann Analysis - Advanced Micro Devices (AMD) - Stansberry Research
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AMD
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