AMD finds buyers at key support level
Advanced Micro Devices Inc. (AMD) Technical Analysis Report for Jun 29, 2020 | by Techniquant Editorial Team
AMD finished Monday at 50.28 gaining $0.18 (0.36%), notably underperforming the S&P 500 (1.47%). Trading up to $1.73 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (AMD as at Jun 29, 2020):
Monday's trading range has been $1.86 (3.71%), that's slightly below the last trading month's daily average range of $2.09. Things look different on the weekly timeframe, where the market's trading range of the last week has been way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for AMD.
After moving lower in the previous session, the market managed to close higher but below the prior day's open, forming a bullish Harami Candle. Additionally, one bullish candlestick pattern matches today's price action, the Takuri Line. The last time a Takuri Line showed up on May 27th, AMD actually lost -1.90% on the following trading day.
After trading down to 48.42 earlier during the day, the stock bounced off the key technical support level at 49.65 (S1). The failure to close below the support might increase that levels significance as support going forward.
Crossing above the lower Bollinger Band, prices have lost at least some of their downward momentum in the short-term and could now be heading back up towards the mean of the Bollinger Bands at 53.53.
Although still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close crossed above the lower Bollinger Band" stand out. Its common bullish interpretation has been confirmed for Advanced Micro. Out of 62 times, AMD closed higher 59.68% 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 51.61% with an average market move of 0.91%.