Eseandre Mordi
⬤ Advanced Micro Devices Inc. (AMD) shares exploded higher this past week, rocketing from the low $210s into the mid-$250 range. Here's the thing—while that's great for anyone already holding, traders watching from the sidelines have been scratching their heads. The move happened so fast that there weren't any clean entry points or bases to work with. Just pure momentum pushing price through level after level without pause.
⬤ The daily chart shows AMD breaking through short- and medium-term moving averages like they weren't even there. We're talking about multiple gaps up and those long, stretched-out candles that scream "buyers in a hurry." This wasn't your typical stair-step rally where you get pullbacks and consolidation—it was more like an elevator ride straight up from early January lows.
The lack of consolidation zones and the presence of frequent gaps complicate risk management for traders who depend on precise technical entries.
⬤ For traders who rely on technical setups, this type of price action is actually frustrating. Sure, the trend's pointing up and momentum's strong, but without proper bases or pullbacks, it's tough to figure out where to jump in with decent risk-reward. Not every rally fits every trading style, and this one's been particularly tricky for anyone looking for structured entries rather than just chasing momentum.
⬤ What AMD's doing right now shows you can have a powerful uptrend and still leave traders on the bench. The strength is real—confidence in the stock is clearly back—but that doesn't automatically mean it's tradable for everyone. Sometimes the best move is waiting for things to settle down a bit. AMD's become a perfect example of how semiconductors can run hot while keeping technical traders selective about when and where they actually pull the trigger.
Eseandre Mordi
