AMD is turning down sharply after releasing a first quarter revenue outlook that did not meet optimistic expectations. Price fell below the 225 area, which suggests we are likely dealing with a deeper decline. This move can still be corrective in nature, possibly an ongoing flat, but in flats wave C is usually sharp, and that looks to be unfolding now. There is room for this decline to continue toward the open gap near 165 from October 2025, which becomes an important downside projection.
Keep in mind there is also a visible double top formation, which points to a much lower target near 122, although that would be a deeper scenario and likely only relevant if the 165 gap does not produce a bounce. So for now, more weakness is likely until we see a full completion of five subwaves down in C, from the 267 high.
We have education post on Flat’s at the end, check it out
Educational Post: Elliott Wave Flat Corrections
A Flat correction in Elliott Wave is a 3–3–5 structure (A = 3 waves, B = 3 waves, C = 5 waves) that moves mostly sideways and commonly appears in Wave 4 or Wave B. There are 3 types of flats:
Regular Flat
- B retraces near the start of A
- C ends slightly beyond A
- Wave B = 90%–100% of A
- Wave C = 100% of A
- Sometimes C = 1.236 × A
Expanded Flat (Most Common)
- B goes beyond start of A
- C extends strongly
- Wave B = 1.05 – 1.382 × A
- Wave C = 1.236 – 1.618 × A
- Very common: C = 1.618 × A
Running Flat (Rare)
- B exceeds A
- C fails to break end of A
- Wave B = 1.05 – 1.236 × A
- Wave C = 0.618 – 1.0 × A
Become a premium member
Get daily Elliott Wave updates for US Single Stocks, SP500,DAX, GOLD, SILVER, CRUDE, FX, CRYPTO, etc. or apply for unlimited access to the Elliot Wave educational videos.