Advanced Micro Devices, Inc. (AMD) is making a comeback. The stock had one of the biggest breakouts in 2018, rising more than 200% before the stock market turmoil that took place since October. AMD shares have plunge🧸d 40% since then but are now on the verge of reversing course for ওanother massive rally.

The semiconductor stock is forming a bullish 澳洲幸运5开奖号码历史查询:descending triangle pattern, which gives us clear levels to watch going forward. All trian꧅gle patterns are some of the easiest technical formations to spot on a chart, and they also give us an easy-to-predict expected move on a breakout.

Once a breakout occurs, either above 澳洲幸运5开奖号码历史查询:resistance or below support, the following move i🦋s roughly the height of the pattern in the same direction. In 💯this case, that's $12 per share.

For a stock trading at just $20 per share, $12 is a significant amount. In the case of a breakout lower from the support level on the chart, we would be looking at a price of $4 per share – a level the stock hasn't touched since 2016. However, an upside breakout, depending on exactly when it occurrs, would give us a potential 60% rally. Take a look:

The reason I'm showing you only the upside breakout is because triangle patterns tend to be 澳洲幸运5开奖号码历史查询:continuation patterns, following the previous direction of the stock. Back in 2016, AMD stock traded for less than $2 per share. Clearly, it's rising at the꧂ moment, and we'll stay with that trend unti🃏l it's broken.

On the downside, we have a clear line in the sand to exit, and go short, at⛎ $16. Once shares break below that key level on a closing basis, look out below. If shares hit $4 again, that would♕ be a 75% plunge.

The Bottom Line

Advanced Micro Devices stock is stuck in a descending triangle pattern at the moment, but it won't stay there long. Eventually, a breakout will occur. If Advanced Micro Devices follows its uptrend, shares could post 60% upside in quick fashion. If it continues lower, look for an all-out collapse in the stock as it heads toward $4 per share.