Shares of Advanced Micro Devices, Inc. (NASDAQ:AMD) formed a classic descending triangle pattern. This is bearish. It could mean the stock is about to move even lower.
When viewed correctly, chart patterns are an illustration of the supply and demand dynamics in a given market. A descending triangle pattern shows that as time passes, sellers become more aggressive. This means they are willing to accept lower prices.
Yet during the same timeframe, the buyers have been complacent. They are patient and content to wait for sellers to come to them. In this case, they are trying to buy at the $102 level.
This combination of aggressive sellers and complacent buyers means there’s a good chance the support is going to break. AMD may continue to move lower.
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