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I can't read tea leaves but this number made my mind melt a bit

On Tuesday after an hour into the New York trading session, Advanced Micro Devices (AMD) broke out of the bull flag pattern it has been trading in since last week. At 11:00am EST, AMD stock traded up to $151.07, up 3.1%. Trading within a bull flag pattern since November 8, AMD shares are now expected to realize another run, with FXStreet's current prediction at $232.50.
AMD stock broke out on Monday, November 8, bounding up 10.1% on news that the former Facebook, now known as Meta Platforms (Wah-wuh!), made the decision to power its new generation of data centers with AMD's EPYC processors and servers.

Quickly, the stock corrected and began slowly edging higher in what appeared to be the consolidation pattern known as a bull flag.

As we wrote last Friday: "Some might even venture to call this a bull-flag formation. This formation takes place when you have a large-scale run-up in a stock in a rather short period of time, so that when you zoom out on the chart, the surge seems almost vertical. This part is called the flagpole. When it hits an extreme high, such as Tuesday's high of $155.57, the stock then consolidates in the shape of a flag or pennant.

"This pennant has a downward slanting top line and an ascending bottom line that meet somewhere in the near future. Typically, this pattern stems from bulls buying up the shares of other traders who are taking profits. Once all the liquidity is taken from the market, the stock rises above the pennant's top line. When it does, the theory says the new spike will be equal to the percentage gain from the prior flagpole.

"If this were to happen for AMD, the resulting spike off the pennant (placed somewhere around $150) would present the opportunity for AMD stock price to jump to $232.50, which is another 55% journey from the breakout point."

So there you have it folks. A number of things could change in the market, but the current consolidation pattern followed by Tuesday's breakout spells another strong run for AMD stock. Many barriers remain in the way, but now is the time to go long AMD stock. As always, use stops.
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