AMD stuck within tight trading range
Advanced Micro Devices Inc. (AMD) Technical Analysis Report for Aug 03, 2020 | by Techniquant Editorial Team
AMD finished Monday at 77.67 gaining $0.24 (0.31%), slightly underperforming the S&P 500 (0.72%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (AMD as at Aug 03, 2020):
Monday's trading range has been $1.43 (1.83%), that's far below the last trading month's daily average range of $2.99. Things look different on the weekly timeframe, where the market's trading range of the last week has been 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 75.07 and 78.96 where it has been caught now for the last three trading days.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar.
Advanced Micro ran into sellers again today around 78.50 for the third trading day in a row after having found sellers at 78.96 in the prior session and at 78.96 two days ago. The last time this happened on June 23rd, AMD lost -2.96% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the two market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to previous two Highs" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Advanced Micro. Out of 145 times, AMD closed higher 55.17% 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 53.79% with an average market move of 1.26%.