AMD dominated by bulls lifting the market higher throughout the day
Advanced Micro Devices Inc. (AMD) Technical Analysis Report for Jul 24, 2020 | by Techniquant Editorial Team
AMD ended the week 26.09% higher at 69.40 after surging $9.83 (16.5%) today on high volume, notably outperforming the S&P 500 (-0.62%). This is the biggest single-day gain ever recorded for Advanced Micro. The last time we've seen such an unusually strong single-day gain on Wednesday, AMD actually lost -3.59% on the following trading day. Today's close at 69.40 marks the highest recorded closing price ever. The bulls were in full control today, moving the market higher throughout the whole session. Ending with a strong close near the high of the day sets a bullish note for the next session.
Daily Candlestick Chart (AMD as at Jul 24, 2020):
Friday's trading range has been $5.89 (9.18%), that's far above the last trading month's daily average range of $2.55. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for AMD.
One bullish candlestick pattern matches today's price action, the White Candle.
Crossing above the upper Bollinger Band for the first time since Wednesday, prices have shown unusually strong upward momentum in the short-term. This might either indicate a potential buying climax after which prices could head back down towards the mean of the Bollinger Bands at 55.48 or signal the beginning of a strong momentum breakout leading to even higher prices.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the 12 market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(14) above 70" stand out. Its common bearish interpretation has been confirmed for Advanced Micro. Out of 49 times, AMD closed lower 53.06% 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 57.14% with an average market move of -0.36%.