AMD rises to highest close ever
Advanced Micro Devices Inc. (AMD) Technical Analysis Report for Aug 05, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, AMD ended Wednesday at 85.31 gaining $0.27 (0.32%), slightly underperforming the S&P 500 (0.64%). Today's close at 85.31 marks the highest recorded closing price ever. Trading up to $1.64 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (AMD as at Aug 05, 2020):
Wednesday's trading range has been $3.00 (3.53%), that's slightly below the last trading month's daily average range of $3.40. Things look different on the weekly timeframe, where the market's trading range of the last week has been 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.
After having been unable to move above 85.81 in the previous session, Advanced Micro ran into sellers again around the same price level today, failing to move higher than 86.32. The last time this happened on Monday, AMD actually gained 9.49% on the following trading day.
Crossing below the upper Bollinger Band, prices have lost at least some of their upward momentum in the short-term and might now be heading back down towards the mean of the Bollinger Bands at 65.41.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to prior High" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Advanced Micro. Out of 578 times, AMD closed higher 48.96% 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 54.84% with an average market move of 1.05%.