TradeKing Blog AMD price action now

On the 1 minute chart, AMD had come up from 11.20 - 11.21 to an intraday high of 11.42, but has been sliding from that level. Price is weak below 11.40 now. 200 day moving average coming down on 1 minute chart but descent curve less. Coming in around 11.50. So price is below that 11.50 and below the 11.40. Now price is below all 4 moving averages on 1 minute chart. And the moving averages nearer price were congregating around that 11.35 level, but could start to do moving average crossovers to the downside. Seeing several small red candles below moving averages now. This is promising for bearish trades like the Puts I have on presently. Just a note that after a big drop like what we saw on the open, often we can have rally attempts. That's why the moving averages are so helpful relative to price of the underlying. The rally attempt from 11.20 to 11.40 range is weak. We are having an intraday cresting action there below the 11.50 and I suspect that we shouldn't violate the 11.50 to the upside. If anything for today, we either go sideways more or have some further weakness down. Remember that if you look at a longer term chart like the 3 month, its easier to see what is happening; even a 4 hour chart shows what happened today. The 5 day doesn't show another possible support so you go further out to the 10 day chart, 20 day chart, 3 month, 6 month, etc. The 3 month is sufficient to see the range of price. Note on that 3 month chart, we retraced some to the upside to close the earlier big drop, but now are showing weakness again. Perhaps if we violate 11, that would be breaking the short term mildly bullish trend. Read MoreOptions involve risk and are not suitable for all investors. Click here to review the Characteristics and Risks of Standardized Options.Click here for additional TradeKing disclaimers.