Tech Stock $AMD Heading For Another Trifold? : (NYSE:AMD) Advanced Micro Devices Inc.

Advanced Micro Devices Inc. reported a first quarter EPS of -0.13, well above (25.77%) the consensus estimate of -0.18. $AMD stock price has been experiencing strong accumulation after the company announcing that new servers will be launching on its technology at a much cheaper price. Current trend for $AMD appears to be very bullish with a strong potential of reaching the upper channel extension in the mid term.

I am going to start off by covering the first image (Daily Dot Chart). I changed the price settings to a Dot graph because I want to make evident past gaps that are significantly important for the forthcoming price action. Gaps most of the times serve as very strong S&R levels, also they tend to repeat themselves close to where they occurred in the past; so after $AMD breaks the $4.30 support, we could see a large gap in the next opening or so.

Important levels to pay close attention are around: $5.50—$5.30—$4.80—$4.30—$4.00.

I bought shares at 4.06 after breaking above the $4 support, closing the day about 5.8% up. Personally I discovered $AMD a bit late, not being able to buy right above the lower channel extension, however I think there is still immense opportunities of profit at current levels. $AMD shows a Volume by Price with strong support around the $5.30—$5.50 level; notice that it is one of the lenghiest bars in the graph. If we get to see a breakout above that Volume by Price bar, one could predict higher prices, eventually reaching the upper channel extension.

Other events to consider: MACD is bullish; RSI is overbought, not meaning there is going to be a reversal, though a soft consolidation might soon originate.

The second image is based on a 60min time frame. $AMD appears to have a rising wedge pattern with a successful bullish breakout; right below the upper line is a decent exit point just in case there is any pullback which $AMD might eventually encounter. In conclusion, I am long $AMD since $4.06 with a strong bullish forethought.

Alexander Schachter

 

Thanks for the analysis. AMD is a stock that has long interested me. I’m hesitant to buy it because it feels a bit like playing with fire. Yes it may be showing strong technical signals to buy but that doesn’t change the fact that it is still a company that is losing a lot of money and rumors really significantly sway the stock price. Any whiff of a buyout sends the stock soaring and any rumor of bankruptcy sends it plummeting. It really is a trading stock now.

 

Yes, AMD is perfect for day trading. The problem right now with AMD is its sensitivity to news releases; I wouldnt want to position myself for more than a day or so, and wake up with a huge gap against me. I see longer time frame trades as a bet I dont want to play with

 

Precisely. Don’t get me wrong – AMD is an awesome day trading stock that can make you a lot of money quickly… but… any longer term trades are a gamble at this point. I thought the Wii U might give them a windfall but it doesn’t look like it.

 

Any updated thoughts on AMD? I’ve been looking at trading it for a while now but I still can’t get a good feeling on it.

 

Hi TradeSystem I feel you fellow, $AMD has been very volatile lately after Goldman Sachs downgraded its ratings and price target to $2.50. They may be right or wrong, however I would wait for AMD's price action to settle a bit. We all know the stock is vastly overvalued making investors leery about a trend reversal; hopefully it does so then I could pick up some shares at much lower prices. With the enclosed image I want to make evident the symmetrical triangle pattern that has been forming on AMD; there are some other good S&R levels, but a breakout outside this triangle, in my opinion, will define AMD's movement in the following days or even weeks.

 

So Goldman wants to load up, eh? I liked AMD before, now I like it a bit more. Will require patience. Have a very small position. If Goldman can push it down to 3 or below by July I may add. I don't like it below 2.50. I'm not trading it short term. (It can go bankrupt, so what keeps it alive? Good technology is part of it, but their real ace in the hole I believe is that none of the customers would want to see an INTEL virtual monopoly. So orders will always be there somewhere. The question is, can they make money? Just losing at a slower rate is going to get old.

 

That’s actually a possibility. I suspect the overall trend will continue to be downward but I do see a convergence happening around the $4.05 mark. The Q2 earnings release isn’t about a month away so I suppose one other possibility is that it could continue to trade around this range for the next little while, while investors decide on if they think the earnings will be good or bad.

 

I’ve also been looking at AMD and no idea that Goldman downgraded it… They make good processors IMHO but the problem is that they have terrible marketing and Intel screwed them over.

 

That's a lot of text that could be easier explained with a picture - https://www.tradingview.com/v/UsGoFFg1/. Make sure you click Play on the right side to see how it played out. Click "Make it Mine" to play around with the published idea.

This chart is not exactly like the idea above, and was published more recently, but you get the idea. It's easy to mark up a chart and share an idea here on ET.