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Advanced Micro Devices Inc. - (AMD) - March 17, 2023

Chipmaker Advanced Micro Devices entered the Green Favored Zone in the SIA S&P 100 Index Report at the start of February for the first time since it joined that index last summer. Since then, the shares have remained in the Green Zone gaining 9.4% over the last six weeks. Yesterday, AMD moved up another 3 spots to 9th place. An accumulation trend in Advanced Micro Devices (AMD) shares which started back in October continues to accelerate. Three months of base building culminated in an initial breakout over $80.00, which coincided with a breakaway gap on a volume spike, the snapping of a downtrend line, and the completion of a bullish Ascending Triangle base. The shares then consolidated in a higher range for several weeks and now have broken out on volume once again signaling the start of a new upleg.

Initial upside resistance appears near the $100.00 round number, then the $104.50-$105.50 area based on measured moves, and then previous highs near $110.00 and $125.00. Initial support moves up to the $85.50 breakout point from trend and round number support near $80.00.

Advanced Micro Devices (AMD) has been under renewed accumulation since bottoming out back in October, establishing a new uptrend of higher lows and completing a series of bullish Double Top patterns. The current advance has extended into a bullish High Pole and snapped a downtrend line.

Currently, AMD is approaching resistance in the $98.00 to $100.00 range where a downtrend line and a round number converge. A push through there would confirm that a new uptrend is underway with next potential resistance near $110.40 and $121.90 based on horizontal and vertical counts. Initial support appears near $88.80 based on a 3-box reversal.

With a perfect SMAX score of 10, AMD is exhibiting strength across the asset classes.

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