Potential Change In Polarity [AMD]

Before the major gap of march 24, AMD wasn't making new higher high's, supply was strong enough in order for the price to not break the orange resistance you can see on the price chart, this major gap broke that resistance and continued to make new higher high's, then the decreasing volume peaks along with various divergences on oscillators showed sign of a reversal, and it indeed happened, that downtrending move filled the gap of march 24 and now the price is at the level of the previous resistance.

This analysis support the hypothesis of a change in polarity, that is the previous resistance will become a support. This hypothesis is supported by a bullish divergence on the TRIX oscillator (period 18) and by decreasing volume peaks, with each peak coinciding with a previous pivot high/low.

However my timing could be bad, as the divergence might only be produced by a noisy variation, but the previous resistance is looking significant to me, and have not been naturally broken (that is broken by a variation that is not a gap).

Making analysis is kinda fun when you think about it, i'am preparing myself when the time come where i will no longer have ideas for future indicators. Brrr how terrifying

Yorum:

The bet was risky, as a gap could have negated our hypothesis, however AMD bounced on its previous resistance, making the hypothesis of a change in polarity more significant.