AMD Technical Analysis & Trade Recommendation

Overview

Advanced Micro Devices (AMD) has shown significant volatility in recent months, with key price movements influenced by earnings announcements, technical indicators, and broader market sentiment. Below is a comprehensive analysis of AMD’s technical setup based on recent price action, volume, moving averages, and momentum indicators.

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Current Market Position

• Latest Closing Price: $110.19

• Recent Trend: A strong recovery from recent lows, with price now testing resistance levels around the 50 EMA.

• Earnings Impact: A previous earnings report led to a sharp decline in price, but recent buy signals indicate potential upside.

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Buy Entry Analysis

1. Moving Averages & Trend Reversal

• AMD recently crossed above the 9-day EMA ($110.19), signaling early bullish momentum.

• The 20-day EMA ($112.57) and 50-day EMA ($114.89) are still acting as resistance, but a break above them could confirm a strong trend reversal.

2. MACD Crossover (Momentum Shift)

• The MACD histogram is turning positive, indicating increasing bullish momentum.

• A recent MACD bullish crossover has occurred, which historically aligns with price appreciation.

3. RSI (Relative Strength Index)

• RSI is currently trending upwards but remains below overbought levels (~70).

• This indicates that there is still room for further price appreciation before the stock becomes overextended.

4. Volume Confirmation

• Increased volume on recent green (upward) days suggests buying pressure is growing.

• If the stock continues to hold above its VWAP (currently ~$109.50), the uptrend could sustain.

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Buy Entry Recommendation

📌 Suggested Entry Point:

• Buy if AMD sustains above $110.50 with strong volume.

• Ideal Confirmation: A close above $112 (near the 20-day EMA) for stronger conviction.

🎯 Target Price:

• Short-term: $115 (Near the 50 EMA)

• Mid-term: $120 (Resistance Zone & Psychological Level)

🛑 Stop Loss:

• Below $105, as breaking below this level could invalidate the bullish reversal pattern.

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Conclusion

AMD is showing early signs of a trend reversal, supported by key technical indicators such as the MACD crossover, RSI uptrend, and EMA breakouts. A confirmed close above $112-$115 would strengthen the bullish case, making it an attractive buy for traders targeting the $115-$120 range. However, risk management is crucial, and a stop-loss at $105 is recommended to mitigate potential downside risk.