AMD Showing Bullish Signs of Major Potential Breakout

AMD ate a rough correction (outlined in the previous descending channel) before catching a wedge that shows all the signs of a major breakout. The downward trough also established a lot of relative strength in this stock. It refused to dip lower than its previous relative-low.

This stock ranks a perfect 99 on Investor Business Daily's stock evaluation, and it gained well yesterday in a rougher day for the overall market. Its fundamental stats all scream good things: 0,75 EPS and a P/E of 52.12. The P/E seems somewhat high, but it is likely indicative of the upcoming earnings (on February 2nd) report anticipated to be a great one.

Note the NEW strong (VERY STRONG) ascending trade channel.

Next: Target take-profit points?

We are tentatively eyeing 98.5 per share as a 1/2 profit snatch; the latter should loom around 100-102.

That said, a mega-long-term hold of AMD also makes sense, if that's your cup of tea. Regardless of approach, this stock is showing all bullish indications of having a quite big week.

GL etc etc

-BDR