Advanced Micro Devices, Inc. (NASDAQ: AMD) Potential continuation of the bearish momentum with breakdown of a bearish rising wedge following a heads & shoulders formation.

1.      The price has broken down a rising wedge following a bearish heads & shoulders reversal pattern formed at the confluence of wedge resistance, which could signal for further downside.

2.      The price could continue to trade lower to retest the support zone at US$72-79,  where the US$79 level is confluent with swing lows formed in February-March this year and a 50% Fibonacci retracement level.

3.      The US$72 level is confluent with a lower swing low formed in January this year and the 61.8% Fibonacci retracement level. The Fibonacci retracement levels are calculated using a swing high of US$102.43 and swing low of US$54.57.

CHART LEGEND

Red box = Resistance zone

Green box = Support zone