AMD finds support at 20-day moving average
Advanced Micro Devices Inc. (AMD) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
AMD finished the week 1.79% higher at 55.17 after gaining $0.52 (0.95%) today on low volume, outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Trading up to $0.99 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on March 23rd, AMD gained 11.00% on the following trading day. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (AMD as at May 22, 2020):
Friday's trading range has been $1.59 (2.9%), that's below the last trading month's daily average range of $2.16. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for AMD.
After trading as low as 53.78 during the day, the stock found support at the 20-day moving average at 53.83.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could accelerate should prices move above the nearby swing high at 56.98 where further buy stops might get triggered. With prices trading close to this year's high at 59.27, upside momentum could speed up should Advanced Micro be able to break out to new highs for the year. Further buying might move prices higher should the market test April's close-by high at 58.63.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for Advanced Micro. Out of 330 times, AMD closed higher 52.73% 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 55.45% with an average market move of 2.05%.