Advanced Micro Devices (AMD) Technically Bullish After Sharp Drop and Bounce
Advanced Micro Devices (AMD) is finally showing some bullish technical activity after falling throughout the latter half of September and all of October, and then making a tentative rebound going into November. In late October, AMD earnings missed expectations, causing investors to dump the stock and pressuring price to gap down sharply and drop towards its 200-day moving average. Despite that, however, the 200-day MA held its ground and AMD’s stock price bounced. Going forward, there are some negatives weighing on the stock and its sector, but overall, the outlook appears somewhat bullish from a technical perspective.
The Technicals gives AMD a bullish rating of 6 (on a scale of 1-10, with ’10’ being the most bullish and ‘1’ being the most bearish). Below are some of the key technicals for AMD, as well as other relevant information that paints a moderately bullish picture of the stock:
- Price Position vs 200-Day SMA: +18.86% (above) – BULLISH
- Position vs 50-Day SMA: -24.87% (below) – BEARISH
- Position vs 20-Day SMA: -14.28% (below) – BEARISH
- 100-Day Trend Slope (Linear Regression): BULLISH
- 200-Day Trend Slope (Linear Regression): BULLISH
- Stochastics (14,3,3) Level: Emerging Up from Oversold – BULLISH
- RSI (14) Level: Emerging Up from Oversold – BULLISH
- Position in Bollinger Bands: Bounce Up from Lower Band – BULLISH
- Sector (ETF: SMH) Long-Term 200-Day Trend: BEARISH
- Sector (ETF: SMH) Medium-Term 100-Day Trend: BEARISH
- Market (S&P 500) Long-Term 200-Day Trend: BULLISH
- Market (S&P 500) Medium-Term 100-Day Trend: BULLISH
- Short Interest Ratio: 12.64% – BEARISH
- Mean Implied Volatility (IV): 71.35% (52-week range of 36.13%-99.73%) – BEARISH
- Analysts’ Mean Target Price: $24.13 (above current price) – BULLISH
- Last Earnings Move: Sharp Gap Down – BEARISH
Overall The Technicals Rating for AMD: TTTTTTTTTT (6 out of 10) – MODERATELY BULLISH
IMPORTANT: The information above should not be construed as investment advice and should not be considered as a solicitation to buy or sell securities. Past performance is not indicative of future results. Trading and investing in the financial markets involves substantial risk of loss, and may not be suitable for all investors.
Disclosure: At the time of this article’s publication, we have no position in any security or trade/investment mentioned, nor do we have any business relationship with any company whose stock may be mentioned.
Chief Market Strategist at The Technicals
With more than two decades of experience as an equity analyst for several major research firms, Don has covered individual stocks (both technically and fundamentally) across a wide variety of sectors and industries, including tech, financial, and retail. He has been quoted regularly in key financial media like Bloomberg and Reuters. Contact Don