Editor note: Futures are up and hit a limit on 5% as optimism increases for the Senate to vote the Corona Virus bill. Other than that, we also have Oil holding the previous levels of 21.00 and setting a reversal pattern. We are approaching the market open in a few hours and the pre market of major tech stocks is already trading on top of yesterday high or with a considerable gap. Hard to find new ideas if you missed some reversal key points yesterday.
$AMD (Advanced Micro Devices Inc) – has been showing relative strength vs the market and didn’t make new lows for the past week or so. As you can note from the chart, simple moving average 200 held nicely and on H1 charts you can find a Head and Shoulders formation. The Fibonacci traders are also there and along with some strong volume and previous level of 40.00 we have aligned a nice trade based on the descending wedge breakout. Currently we are trading near 44 mark but we would consider a trade from a pullback area of 42.50-43.50 on a M30 charts. Note that the Corona Virus bill has still to be passed so you want to wait till the market shows some power before you load in the mentioned price area.
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