AMD Elliott Wave calling the decline after zig zag pattern

In this technical blog we’re going to take a quick look at the Elliott Wave charts of AMD stock  published in members area of the website.  As our members know, AMD recently gave us a correction from the 241.58 peak, after which we called the drop in the stock. Recovery formed Elliott Wave Wave Zig Zag Pattern. In the further text we are going to explain the Elliott Wave Pattern and the Forecast.

Before we take a look at the real market example, let’s explain Elliott Wave Zigzag pattern.

Elliott Wave Zigzag is the most popular corrective pattern in Elliott Wave theory . It’s made of 3 swings which have 5-3-5 inner structure. Inner swings are labeled as A,B,C where A =5 waves, B=3 waves and C=5 waves. That means A and C can be either impulsive waves or diagonals. (Leading Diagonal in case of wave A  or Ending in case of wave C) . Waves A and C must meet all conditions of being 5 wave structure, such as: having RSI divergency between wave subdivisions, ideal Fibonacci extensions and  ideal retracements.

AMD one-hour Elliott Wave analysis 10.29.2024

is showing 5 waves down from the 175.04 peak . That indicates the stock ended only first leg of the larger pull back and we should ideally see further weakness once B red recovery completes. Wave B red correction looks to be unfolding as Elliott Wave Zig Zag pattern. First leg ((a)) of B is counted as 5 waves, which means C leg should also have a form of 5 waves pattern. Approximate area where (B) can end is equal legs ((a))- ((b)) . We don’t recommend buying the stock and expect to see decline in  a 3 waves pull back at least or toward new lows ideally.

AMD one-hour Elliott Wave analysis 10.31.2024

The stock made decline after completing B red bounce as Elliott Wave Zig Zag pattern at 169.31 peak. We got a break down toward new lows as expected. As far as the price stays below 169.31 high, we can can see further weakness in near term.

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