AMD closes within previous day's range after lackluster session
Advanced Micro Devices Inc. (AMD) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
AMD finished Thursday at 47.50 gaining $2.87 (6.43%) on low volume, slightly outperforming the S&P 500 (6.24%). The bulls were in full control today, moving the market higher throughout the whole session. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (AMD as at Mar 26, 2020):
Thursday's trading range has been $2.10 (4.59%), that's far below the last trading month's daily average range of $3.50. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently strongly lower than usual for AMD. Prices continued to consolidate within a tight trading range between 43.99 and 47.88 where it has been caught now for the last three trading days.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns.
The market managed to close back above the 100-day moving average at 44.97. Prices are trading close to the key technical resistance level at 48.00 (R1). After having been unable to move above 47.88 in the prior session, the stock ran into sellers again around the same price level today, failing to move higher than 47.50. The last time this happened on Monday, AMD actually gained 11.00% on the following trading day.
The share shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Buying could speed up should prices move above the close-by swing high at 47.88 where further buy stops might get activated. As prices are trading close to March's high at 50.20, upside momentum could accelerate should Advanced Micro mark new highs for the month.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "White Candle" stand out. Its common bullish interpretation has been confirmed for Advanced Micro. Out of 551 times, AMD closed higher 51.91% 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 53.18% with an average market move of 1.38%.