Antonio’s perspective for AMD
Stock has been pulling back since hitting a 52-week high of $15.55 on February 28. Short term traders should watch the downtrend line on chart above around the $14.20 level. Only a break and close above this zone (14.2/25) would lead to reversal higher into 15 level. On the downside, the daily chart is showing good support around the $13.50 area, but a decisive fall below this area can pull the stock down to its rising 50-day exponential moving average located around the 12.90 level.
Daily technical indicators have corrected overbought conditions and remain in bullish zones. The MACD has crossed below its signal line and the RSI is sliding down towards its 50% level. However, stock still trading above all major daily EMAs in a long-term bull market. The bias remains to the upside, but I would wait for a break of the downtrend line to take any long position. If you are long, use a stop loss around the 12.40 level.
Have a Happy trading week ahead !!
This is a guest post by António Costa, acclaimed trader and the popular author of AC Investor Blog. All views and analysis belong to the author.
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