AMD finds buyers around 22.72 for the third day in a row
Advanced Micro Devices Inc. (AMD) Technical Analysis Report for Feb 13, 2019 | by Techniquant Editorial Team
AMD finished Wednesday at 22.85 gaining $0.03 (0.13%) on low volume, slightly underperforming the S&P 500 (0.3%). Trading $0.26 higher after the open, the share was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (AMD as at Feb 13, 2019):
Wednesday's trading range has been $0.52 (2.26%), that's far below the last trading month's daily average range of $1.06. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for AMD. Prices continued to consolidate within a tight trading range between 22.27 and 23.56 where it has been caught now for the whole last trading week.
One bearish candlestick pattern matches today's price action, the Bearish Spinning Top.
The stock found buyers again today around 22.72 for the third trading day in a row after having found demand at 22.75 in the prior session and at 22.66 two days ago. The last time this happened on December 14, 2018, AMD actually lost -5.38% on the following trading day.
Advanced Micro shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying could speed up should prices move above the nearby swing high at 23.56 where further buy stops might get triggered. Selling could accelerate should prices move below the close-by swing low at 22.27 where further sell stops might get activated. With prices trading close to this year's high at 25.14, upside momentum could speed up should the market be able to break out to new highs for the year.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to previous low" stand out. Its common bullish interpretation has been confirmed for Advanced Micro. Out of 545 times, AMD closed higher 49.17% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 54.50% with an average market move of 1.21%.