AMD closes within prior day's range
Advanced Micro Devices Inc. (AMD) Technical Analysis Report for Jul 10, 2020 | by Techniquant Editorial Team
AMD finished the week 6.76% higher at 55.88 after losing $1.38 (-2.41%) today, significantly underperforming the S&P 500 (1.05%). 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 Jul 10, 2020):
Friday's trading range has been $2.64 (4.59%), that's above the last trading month's daily average range of $2.02. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for AMD.
One bearish candlestick pattern matches today's price action, the Black Candle. The last time a Black Candle showed up on July 2nd, AMD actually gained 2.03% on the following trading day.
Prices broke below the key technical support level at 56.58 (now R1), which is likely to act as resistance going forward.
Crossing below the upper Bollinger Band, prices have lost at least some of their upward momentum in the short-term and might now be heading back down towards the mean of the Bollinger Bands at 53.47.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
With prices trading close to this year's high at 59.27, upside momentum could speed up should the stock be able to break out to new highs for the year. Further buying might move prices higher should the market test June's close-by high at 59.00.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Down Close Near Low of Period" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Advanced Micro. Out of 499 times, AMD closed higher 51.30% 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 57.31% with an average market move of 1.52%.