AMD stuck within tight trading range
Advanced Micro Devices Inc. (AMD) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
AMD ended the month 47.18% higher at 77.43 after losing $0.77 (-0.98%) today, notably underperforming the S&P 500 (0.77%). Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (AMD as at Jul 31, 2020):
Friday's trading range has been $3.60 (4.58%), that's slightly above the last trading month's daily average range of $2.98. 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. Prices continued to consolidate within a tight trading range between 73.90 and 78.96 where it has been caught now for the last three trading days.
One bullish candlestick pattern matches today's price action, the Tweezer Top.
After having been unable to move lower than 75.07 in the prior session, the market found buyers again around the same price level today at 75.36.
Crossing below the upper Bollinger Band, prices have lost at least some of their upward momentum in the short-term and could now be heading back down towards the mean of the Bollinger Bands at 61.00. The last time this happened on Tuesday, AMD actually gained 12.54% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Tweezer Top" stand out. Its common bullish interpretation has been confirmed for Advanced Micro. Out of 59 times, AMD closed higher 52.54% of the time on the next trading day after the market condition occurred.