Advanced Micro Devices (AMD) saw a breakout above its 200-day simple moving average on November 1, 2023, when the average was at $110.12. The stock reached a high of $227.30 on March 8, 2024, before dropping to $159.31 on April 15. The stock saw a rebound towards its semiannual pivot at $161.28 on that day. Additionally, there was an after-hours high of $130.61 following the earnings report.
AMD does not come cheap, with a p/e ratio of 83.73% and no dividend offerings as reported by Macrotrends. The daily chart for AMD shows that the stock was tracking its 50-day simple moving average until it broke out above both the 200-day and 50-day averages on November 1, 2023, when they were at $110.12 and $103.22 respectively. There was a downside key reversal day on March 8, 2024, with a high of $227.30 and a closing price of $207.39. The chart includes various key levels such as the monthly risky level for April at $173.78 and the second quarter value level at $119.04.
On the weekly chart for AMD, the stock is trading below its five-week modified moving average at $172.52. Despite this, it remains well above its 200-week simple moving average at $101.80, which is considered a ‘reversion to the mean’ level. The 12x3x3 weekly slow stochastic reading has been declining since the week of March 22, with a current reading at 35.52. Stochastic readings typically range from 00.00 to 100.00, with values above 80.00 indicating overbought conditions and values below 20.00 indicating oversold conditions.
A trading strategy recommendation for AMD is to buy on weakness towards its annual pivot at $148.49 and reduce holdings on strength towards its monthly risky level at $173.78. With the stock showing some volatility and key levels to watch, investors will need to keep a close eye on AMD’s performance. It remains to be seen how the company will navigate the current market conditions and whether it can maintain its momentum in the coming months.
