Many chip stocks have surged on AI hopes recently, but Advanced Micro Devices has been notably absent.
The first patterns on today’s chart are weekly lows around $161.81 and $172.49. AMD has been stuck between these levels for the past month. In the process, it’s formed a range below its March peak. Will this mark a new top?
Second, prices have been unable to break above the falling 50-day simple moving average. The 8-day exponential moving average (EMA) has also slipped back under the 21-day EMA. Those events may reflect weakening intermediate and short-term trends.
Third, MACD has turned negative.
The weekly chart may have further signals. The bounce in May stalled at a 50 percent retracement of the drop in March and April. AMD also failed to hold a breakout above its 2021 peak. That could make buyers mull the possibility of an even deeper pullback toward the June 2023 high of $132.82.
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The first patterns on today’s chart are weekly lows around $161.81 and $172.49. AMD has been stuck between these levels for the past month. In the process, it’s formed a range below its March peak. Will this mark a new top?
Second, prices have been unable to break above the falling 50-day simple moving average. The 8-day exponential moving average (EMA) has also slipped back under the 21-day EMA. Those events may reflect weakening intermediate and short-term trends.
Third, MACD has turned negative.
The weekly chart may have further signals. The bounce in May stalled at a 50 percent retracement of the drop in March and April. AMD also failed to hold a breakout above its 2021 peak. That could make buyers mull the possibility of an even deeper pullback toward the June 2023 high of $132.82.
TradeStation has, for decades, advanced the trading industry, providing access to stocks, options and futures. See our Overview for more.
Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options or futures); therefore, you should not invest or risk money that you cannot afford to lose. Online trading is not suitable for all investors. View the document titled Characteristics and Risks of Standardized Options at www.TradeStation.com/DisclosureOptions. Before trading any asset class, customers must read the relevant risk disclosure statements on www.TradeStation.com/Important-Information/. System access and trade placement and execution may be delayed or fail due to market volatility and volume, quote delays, system and software errors, Internet traffic, outages and other factors.
Securities and futures trading is offered to self-directed customers by TradeStation Securities, Inc., a broker-dealer registered with the Securities and Exchange Commission and a futures commission merchant licensed with the Commodity Futures Trading Commission). TradeStation Securities is a member of the Financial Industry Regulatory Authority, the National Futures Association, and a number of exchanges.
TradeStation Securities, Inc. and TradeStation Technologies, Inc. are each wholly owned subsidiaries of TradeStation Group, Inc., both operating, and providing products and services, under the TradeStation brand and trademark. When applying for, or purchasing, accounts, subscriptions, products and services, it is important that you know which company you will be dealing with. Visit www.TradeStation.com...isclosureTSCompanies for further important information explaining what this means.
