Advanced Micro Devices (AMD) EW-Analysis
AMD is in front of one of its biggest opportunities.
Since its IPO in 1972, AMD has shown a relatively passive long-term history. After forming an initial long-term impulsive fractal within yellow wave 1, the market transitioned into a prolonged corrective phase, completing yellow wave 2. This correction lasted from 1984 to 2016—more than 32 years—establishing a strong long-term base for future bullish development.
In January 2016, AMD regained sustainable bullish momentum and initiated a new impulsive structure within the light blue cycle. This light blue cycle has now completed and culminated at the current all-time high of $267.08, forming green wave 1 of a higher-degree structure.
Our expectation is that AMD will now enter a short- to mid-term corrective phase within green wave 2. Once green wave 2 is completed, we anticipate a strong expansion in bullish momentum, driving the price toward new all-time highs and into our projected Fibonacci target zone.
Within this target zone, we expect the broader green cycle to unfold further. After the completion of green wave 3, a corrective green wave 4 should follow, leading into a final impulsive leg in green wave 5. This would complete the green cycle and contribute to the development of yellow wave 3 on a higher degree.
The projected Fibonacci price target zone serves as a guideline for where this long-term green cycle—and potentially yellow wave 3—may complete. The key levels are:
- 161.8% at $533.93
- 200% at $635.87
- 261.8% at $800.79
At present, the market has only completed green wave 1 and appears to be in the early stages of a short- to mid-term corrective phase within green wave 2.
If you want, I can also tighten it further into a more “institutional / analyst report” tone or keep it more trader-style.
Since AMD has reached its current all-time high and completed green wave 1, we have defined a Fibonacci retracement zone in which we expect the ongoing correction within green wave 2 to come to an end.
This zone is defined as follows:
- 61.8% at $103.16
- 78.6% at $58.59
- 88.7% at $31.79
From our perspective, this zone represents prime buying and accumulation opportunities for the stock. In the context of our long-term outlook, these levels reflect extremely attractive valuations.
We expect AMD to complete its corrective phase and finalize green wave 2 within this zone, followed by a strong recovery in bullish momentum in line with our long-term expectations.
If any structural changes occur, or if AMD reaches and activates our Fibonacci retracement zone, we will provide updates immediately.
Kind regards,
Monalytics
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