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Bulls Overcome Bears as Advanced Micro Breaks Out on One of Our Charts

The wait for a definitive breakout can be frustrating but we finally have it on the Point and Figure chart.
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A traditional bar chart does not show it but Advanced Micro Devices (AMD) has made a breakout on our Point and Figure chart. Let's check it out.  

In this daily bar chart of AMD, below, we can see that prices are at the top end of its April-June sideways pattern. Prices are above the rising 50-day moving average line which acted as support earlier this month. The slope of the 200-day moving average line is also positive and was last tested at the low in March.

The daily On-Balance-Volume (OBV) line has moved slightly lower the past eight weeks suggesting that there has been some light liquidation (selling).

The Moving Average Convergence Divergence (MACD) oscillator has declined down to the zero line but is now crossing to the upside for a new buy signal.  

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In this weekly bar chart of AMD, below, we can see that prices have pushed up above $55 a number of times but it has not been able to launch a new uptrend. The slope of the 40-week moving average line is bullish.

The weekly OBV line has been neutral all year. The MACD oscillator is waiting for a new move up (or down).  

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In this daily Point and Figure chart of AMD, below, we can finally see the upside breakout with the trade at $58.65. An upside price target of $71 is indicated now.  

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Bottom line strategy: The wait for a definitive breakout can be frustrating but we have it on the Point and Figure chart (above). Go long or add to longs at current levels risking a close below $52. The low $70's is our price target for now. 

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