AMD rises to highest close ever
Advanced Micro Devices Inc. (AMD) Technical Analysis Report for Jul 29, 2020 | by Techniquant Editorial Team
AMD ended Wednesday at 76.09 surging $8.48 (12.54%) on high volume, strongly outperforming the S&P 500 (1.24%) following Tuesday's earnings report. Today's close at 76.09 marks the highest recorded closing price ever. Trading up to $1.60 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (AMD as at Jul 29, 2020):
AMD reported earnings of $0.18 per share after Tuesday's market close. With analysts having expected an EPS of $0.16, Advanced Micro Devices Inc. topped market expectations by 12.5%. The company's last earnings report was released on April 28, 2020, when Advanced Micro Devices Inc. reported earnings of $0.18 per share meeting market expectations.
Wednesday's trading range has been $3.29 (4.36%), that's slightly above the last trading month's daily average range of $2.73. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for AMD.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top. The last time a Bullish Spinning Top showed up on June 22nd, AMD actually lost -1.41% on the following trading day.
Crossing above the upper Bollinger Band for the first time since Monday, prices have shown unusually strong upward momentum in the short-term. This could either indicate a potential buying climax after which prices might head back down towards the mean of the Bollinger Bands at 58.47 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 Stock Earning Report based market condition "Trading Day post strong Earnings Report" stand out. While it is usually interpreted as neutral, it has actually shown to be bullish for Advanced Micro. Out of 14 times, AMD closed higher 57.14% of the time on the next trading day after the market condition occurred.