AMD closes higher for the 2nd day in a row
Advanced Micro Devices Inc. (AMD) Technical Analysis Report for Aug 04, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, AMD ended Tuesday at 85.04 surging $7.37 (9.49%) on high volume, strongly outperforming the S&P 500 (0.36%). Today's close at 85.04 marks the highest recorded closing price ever. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 78.50, Advanced Micro confirmed its breakout through the prior session high after trading up to $7.30 above it intraday.
Daily Candlestick Chart (AMD as at Aug 04, 2020):
Tuesday's trading range has been $7.80 (10.0%), that's far above the last trading month's daily average range of $3.32. Weekly volatility is also higher, being 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 Bearish Hikkake Pattern. The last time a Bearish Hikkake Pattern showed up on July 17th, AMD actually gained 4.40% on the following trading day.
Crossing above the upper Bollinger Band for the first time since July 30th, 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 63.82 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 13 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Hikkake Pattern" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Advanced Micro. Out of 100 times, AMD closed higher 54.00% 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 60.00% with an average market move of 2.82%.