Advanced Micro Devices (AMD) Recovers Quickly and Challenges the Prevailing Price Top
Advanced Micro Devices (AMD) has been in consolidation since February-March this year. It extended a bearish correction at the start of May, but has since recovered sharply as we can see on the daily chart below.
Advanced Micro Devices (AMD) Daily Chart
(click to enlarge)
- It should be noted that price was consolidating ahead of the Q1 earnings report and plunged immediately after the report was released on May 2nd.
- Price came down to 10.00 but found support here. Note that price also respected the 200-day simple moving average, which around 10.00 at the time as well.
- It is a possibility that AMD is still bullish since it bounced up from the 200-day SMA and anchored above 10.00.
- Perhaps, it is going to become a sideways market between 10.00 and 15.50.
- Finally, AMD might still be in bearish correction.
Key Resistance and Scenarios:
- What happens as price approaches 13.00 will be key.
- Just above 13.00, there is a falling trendline.
- Also, the RSI is right around 60. If the market is still in bearish correction mode, price should stall around 13.00 and the RSI should stall around 60 and turn down.
- In this bearish correction scenario, price has downside towards 9, although there is a support/resistance pivot around 9.40. The point is that we can anticipate another low if price retreats from 13.00.
- If price clears above 13.75, it would point to either a sideways or bullish market, which puts the at least the 15-15.50 high in sight.