AMD closes above its opening price after recovering from early selling pressure
Advanced Micro Devices Inc. (AMD) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving higher for the 6th day in a row, AMD finished the week 11.22% higher at 55.31 after gaining $0.78 (1.43%) today, significantly outperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Today's close at 55.31 marks the highest recorded closing price ever. Trading up to $0.63 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (AMD as at Feb 14, 2020):
Friday's trading range has been $0.84 (1.52%), that's far below the last trading month's daily average range of $1.66. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for AMD.
One bearish candlestick pattern matches today's price action, the Hanging Man. The last time a Hanging Man showed up on January 29th, AMD actually gained 2.67% on the following trading day.
With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop back into the Bollinger Band on the next trading day although might signal a potential change in momentum that could lead to a correction back down towards the center of the Bollinger Bands at 50.74.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "6 Consecutive Higher Closes" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for Advanced Micro. Out of 21 times, AMD closed lower 66.67% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 61.90% with an average market move of -2.11%.