Advanced Micro Devices (AMD) was downgraded by a sell-side agency Thursday and the inventory is buying and selling decrease on the day.
In our final assessment of AMD again on Jan. 4 we have been bullish and wrote that “Traders may go lengthy AMD at present ranges. Risk to $132 and take into account including to longs above $165. The $201 space is our worth goal for now.”
Our lengthy suggestion was rapidly stopped down and AMD declined into early March.
Let’s see what may occur subsequent.
In this each day bar chart of AMD, under, we are able to see that the shares had traded a couple of days above the 50-day and 200-day shifting averages however gapped down under each of those averages Thursday. Trading quantity has been heavier than common the previous two months and the each day On-Balance-Volume (OBV) line has been regular in March. Thursday’s worth weak point may very well be hitting current AMD patrons as their positions have rapidly turned “underwater.”
The Moving Average Convergence Divergence (MACD) oscillator moved as much as the zero line however is prone to flip decrease once more.
In the weekly Japanese candlestick chart of AMD, under, we are able to see that affected person buyers have been rewarded with good positive factors over the previous three years. Prices turned decrease this yr and the newest candlestick sample reveals an higher shadow as merchants rejected the current highs. The weekly OBV line reveals a decline from November.
The MACD oscillator has declined to the zero line and will quickly sign an outright promote sign.
In this each day Point and Figure chart of AMD, under, we are able to see a possible worth goal of $169. A commerce at $99 will weaken the image.
In this weekly Point and Figure chart of AMD, under, we see that the software program has counted the X’s and O’s and got here up with a $43 worth goal. Don’t shoot the messenger.
Bottom-line technique: AMD has turned down from a decrease excessive. A retest of the $100 space is now doubtless and an in depth under $100 is prone to precipitate additional losses. Avoid the lengthy aspect of AMD.
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