Advanced Micro Devices (AMD) experienced a significant milestone on November 1, 2023, when the stock broke out above its 200-day simple moving average at $110.12. Trading as high as $227.30 on March 8, 2024, AMD then saw a decline to $159.31 on April 15, with a semiannual pivot at $161.28 acting as a key support level. The stock also saw an after-hours high of $130.61 in reaction to earnings, showcasing volatility in its price movements.
Despite its impressive performance, AMD is not considered cheap, with a p/e ratio of 83.73% and no dividend offered by the company, as reported by Macrotrends. The daily chart for AMD shows how the stock tracked its 50-day simple moving average before breaking above the 200-day and 50-day averages on November 1, 2023, when the 200-day average was $100.12 and the 50-day average was $103.22. The chart also highlights key price levels such as the semiannual pivot at $161.28 and the monthly risky level for April at $173.78.
Analyzing the weekly chart for AMD reveals a negative outlook, with the stock currently trading below its five-week modified moving average at $172.52. Despite this, AMD remains well above its 200-week simple moving average at $101.80. The 12x3x3 weekly slow stochastic reading has been declining since the week of March 22, with the current reading at 35.52. Stochastic readings ranging between 0.00 and 100.00 indicate overbought levels above 80.00 and oversold levels below 20.00.
In terms of a trading strategy, investors are advised to buy AMD on weakness towards its annual pivot at $148.49 and reduce holdings on strength towards the monthly risky level at $173.78. These key support and resistance levels can help investors navigate the volatility in AMD’s stock price and make informed decisions based on technical analysis. Overall, AMD’s strong performance and price movements offer both opportunities and risks for investors looking to capitalize on the stock’s potential growth in the future.
