AMD closes below its opening price unable to hold early session gains
Advanced Micro Devices Inc. (AMD) Technical Analysis Report for Jul 28, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, AMD ended Tuesday at 67.61 losing $1.36 (-1.97%), notably underperforming the S&P 500 (-0.65%). Trading $1.70 higher after the open, the stock was unable to hold its gains as the bears took control ending the day below its opening price. Closing below Monday's low at 67.79, the share confirmed its breakout through the prior session low after trading up to $0.76 below it intraday.
Daily Candlestick Chart (AMD as at Jul 28, 2020):
Tuesday's trading range has been $2.77 (4.07%), that's slightly above the last trading month's daily average range of $2.66. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for AMD.
Two candlestick patterns are matching today's price action, the Bearish Spinning Top and the Shooting Star which are both known as bearish patterns.
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 57.29. The last time this happened on July 23rd, AMD actually gained 16.50% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Closed below last periods low" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Advanced Micro. Out of 391 times, AMD closed higher 51.66% 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 52.17% with an average market move of 1.07%.