AMD’s stock recently dropped, reaching a point known as the Equal Legs area or Blue Box. This suggests that AMD is in a wave 4 pullback, and it may decline further in the short term toward the Blue Box. We’re looking at a target range of $153.72 to $149.60 for buying opportunities. It’s best not to sell AMD, as the overall trend is upward. We expect a strong bounce back from the Blue Box. To manage your trades, make your positions risk-free when the stock hits the 50% Fibonacci level. Set stop-loss orders below the 1.618 Fibonacci extension. The stock found support at the Blue Box and is now moving towards new highs. As long as it stays above the $149.27 low, we expect more upward movement. Trading in the Foreign Exchange market can offer high returns, but it also carries significant risks. It’s important to evaluate your investment goals, experience, and risk tolerance before starting. Forex trading is highly leveraged and can lead to large losses. While we provide trading advice in good faith, success is never guaranteed, and our content is protected by copyright laws with strict penalties for unauthorized use. Looking back a few weeks, AMD’s stock pulled back just as we expected, finding support between $153.72 and $149.60. This confirmed that the dip was a healthy pause in a larger upward trend, reinforcing our belief in the stock’s strength. As of late July 2025, AMD is trading well above that support level and is nearing $185. This strength follows AMD’s recent Q2 2025 earnings report, which exceeded expectations due to strong demand for their MI400 series AI accelerators. We believe this positive momentum will continue, pushing the stock higher in the coming weeks. For those trading derivatives, this is a good time for bullish strategies. We see potential in selling out-of-the-money cash-secured puts with expiration dates in August or September, targeting strike prices around $170. This strategy lets us collect premiums while setting a lower entry point if the stock dips briefly. Recent industry reports from this quarter strengthen our confidence. AMD’s market share in data centers has climbed to over 35%. We are keeping a close eye on the $149.27 low from the last pullback. As long as the price stays above this level, we expect upward movement. Traders looking to maximize their gains might consider using call debit spreads. With increased implied volatility following the positive earnings news, spreads offer a cost-effective way to position for a move toward new all-time highs. We view this as a continuation of the primary upward trend. This setup reminds us of the consolidation phase at the end of 2024, where a similar dip was quickly bought up, leading to a multi-month rally. That past pattern suggests that this recent bounce isn’t just a short-term swing. We anticipate this upward momentum will continue through the rest of the summer.

here to set up a live account on VT Markets now