Our stockscreener has identified a possible breakout setup on ADVANCED MICRO DEVICES (NASDAQ:AMD). This occurs when the stock consolidates following a significant upward movement. While the breakout outcome cannot be guaranteed, it may be worth monitoring NASDAQ:AMD for potential opportunities.
Technical analysis of NASDAQ:AMD
At ChartMill, a crucial aspect of their analysis is the assignment of a Technical Rating to each stock. This rating, ranging from 0 to 10, is calculated daily by considering numerous technical indicators and properties.
Taking everything into account, AMD scores 10 out of 10 in our technical rating. Both in the recent history as in the last year, AMD has proven to be a steady performer, scoring decent points in every aspect analyzed.
- Both the short term and long term trends are positive. This is a very positive sign.
- Looking at the yearly performance, AMD did better than 96% of all other stocks. We also observe that the gains produced by AMD over the past year are nicely spread over this period.
- AMD is part of the Semiconductors & Semiconductor Equipment industry. There are 106 other stocks in this industry. AMD outperforms 91% of them.
- AMD is currently trading near its 52 week high, which is a good sign. The S&P500 Index however is also trading near new highs, which makes the performance in line with the market.
- AMD is currently showing a bull flag pattern! A bull flag pattern occurs when prices pull back slightly after a strong rise up. This may be a nice opportunity for an entry.
Check the latest full technical report of AMD for a complete technical analysis.
How do we evaluate the setup for NASDAQ:AMD?
ChartMill also assign a Setup Rating to every stock. With this score it is determined to what extend the stock has been trading in a range in the recent days and weeks. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. NASDAQ:AMD scores a 9 out of 10:
Besides having an excellent technical rating, AMD also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. There is a resistance zone just above the current price starting at 177.67. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 174.82, a Stop Loss order could be placed below this zone. Another positive sign is the recent Pocket Pivot signal.
Trading breakout setups.
One way to play this would be to wait for the actual breakout to happen and buy when the stock breaks out above the current consolidation zone. A possible place for a stop loss would be below this zone.
Of course, there are many ways to trade or not trade NASDAQ:AMD and this article should in no way be interpreted as trading advice. The article is purely based on an automated technical analysis and just points out the technical observations. Always make your own analysis and trade at your own responsibility.
Every day, new breakout setups can be found on ChartMill in our Breakout screener.
Keep in mind
This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.
