AMD dominated by bulls lifting the market higher throughout the day
Advanced Micro Devices Inc. (AMD) Technical Analysis Report for Jul 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, AMD finished Thursday at 78.20 gaining $2.11 (2.77%), strongly outperforming the S&P 500 (-0.38%). Today's close at 78.20 marks the highest recorded closing price ever. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 77.19, the share confirmed its breakout through the prior session high after trading up to $1.77 above it intraday.
Daily Candlestick Chart (AMD as at Jul 30, 2020):
Thursday's trading range has been $3.89 (5.16%), that's above the last trading month's daily average range of $2.86. 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.
Two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Last Engulfing Top Pattern. The last time a Last Engulfing Top Pattern showed up on May 19th, AMD actually gained 1.66% on the following trading day.
With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop back into the Bollinger Band on the next trading day although might signal a potential change in momentum that could lead to a correction back down towards the center of the Bollinger Bands at 59.75.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Last Engulfing Top Pattern" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Advanced Micro. Out of 77 times, AMD closed higher 50.65% 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 three trading days, showing a win rate of 58.44% with an average market move of 0.17%.