ADVANCED MICRO DEVICES (AMD) - November 10, 2023
Chipmaker Advanced Micro Devices (AMD) has returned to the Favored Zone of the SIA S&P 100 Index Report for the first time since July. A summer slide ended with the shares in the red zone but over the last six weeks, they have steadily clawed their way back. AMD finished in 24th position yesterday, up 4 spots on the day and up 27 places in the last month.
In addition to AMD, other Electronics and Semiconductor stocks in the Green Favored Zone include Broadcom* (AVGO), Nvidia* (NVDA), and Intel* (INTC).
Advanced Micro Devices (AMD) shares have roared back to life in the last two weeks. After rallying through the first half of this year, the shares drifted back downward through the summer in a trading correction. Two weeks ago, this decline was contained by a successful test of support at the 50-day moving average and a successful retest of the $95.00 level. Last week, the shares started to attract renewed interest, regaining $100.00 and snapping a downtrend line on a spike in volume.
This week, AMD has extended these gains with support moving up toward $110.00 following a successful retest of a breakout point wit more support possible near $105.00. Initial upside resistance appears in the $125.00 to $130.00 zone, based on a measured move and a retest of the June high.
*Shares of Broadcom, Nvidia, and Intel are held in portfolios managed by SIA Wealth Management.
A summer correction in Advanced Micro Devices (AMD) shares appears to be over and the shares seem to be resuming the broader recovery trend which started back in October of 2022. Last month, AMD broke down by one row, then reversed upward, a classic Bear Trap bottom, and hasn’t looked back since. Into November, the shares have snapped a downtrend line and completed bullish Double Top and Spread Double Top breakouts, signaling the start of a new upswing.
Initial upside resistance appears at previous column highs and lows near $119.50 where a breakout would complete a pending spread triple top pattern. After that, resistance may appear at the June high near $129.35, or $134.55 which is based on a horizontal count. Initial support appears near $104.00 based on a 3-box reversal, then the $100.00 round number.
With a perfect SMAX score of 10, AMD is exhibiting strength across the asset classes.
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