Hello everyone! In today’s article, we’ll examine the recent performance of Advanced Micro Devices ($AMD) through the lens of Elliott Wave Theory. We’ll review how the reaction from the April 2025 blue box areas unfolded as an impulsive 5 waves and discuss what’s next. Let’s dive into the structure and expectations for this stock.
ABC correction (Zig-Zag)
5 Wave Impulse Structure
The April 2025 Setup
The above chart illustrates our Elliott Wave forecast for $AMD as of April 2025. At this point, $AMD was depicted as looking to complete a potential ABC zig-zag correction, specifically reaching a blue box area between approximately $101.11 and $47.64. This blue box represented a high-probability reversal zone, calculated using Fibonacci extensions (1 and 1.618 respectively, of prior waves).
The July 2025 Soar
Fast forward to July 13, 2025, as seen above. This chart strikingly demonstrates the strong reaction from the April 2025 blue box area. From the low within the blue box, $AMD has indeed surged, exhibiting a clear five-wave impulsive structure. Comparing the two charts, the most significant extension higher is evident in the current price action. In the April chart, the market was still in the corrective phase, potentially forming the (II) wave within the blue box. The July chart shows that from that blue box low, $AMD has embarked on a powerful rally. The rally has unfolded with distinct sub-waves, particularly noticeable in the extension of wave 3, which then corrected in wave 4, and is currently extending higher in wave (3).
The 90% Rally and What’s Next
From the approximate low of the blue box around $75, $AMD has climbed to current levels near $146. This represents an impressive gain of approximately 90%. This strong rally confirms the validity of the Elliott Wave count. It anticipated a bounce from this key support area.
The current chart shows $AMD looking for further extensions in wave (3) and (5). The target of $154 is still ahead. This suggests further upside potential to complete this current impulse.
Conclusion
The Elliott Wave analysis successfully identified a high-probability reversal zone in $AMD back in April 2025. This led to a remarkable 90% rally. The price action since then has unfolded precisely as an impulsive five-wave structure. This reinforces the bullish outlook. With the $154 target still on the horizon, $AMD continues to demonstrate strong momentum. Traders will be watching for the completion of this current impulse before anticipating any significant corrective moves.