AMD stock has touched support levels, rally can be in place

AMD started a support line on January 6th, hitting an intraday low of $60.05. The stock rallied over a period of nearly 5 months hitting a high of $130.79 on May 30th, 2023. That was a rally of 117.8%.

Similarly, AMD touched the support line four consecutive days in a row from October 26 – October 31st 2023. The stock rallied from October 31, 2023 from an intraday low of $94.07 to $227.30 on March 8, 2024. This was a rally of 141.6%.

On Monday August 5th 2024 while the stock market took a hit, AMD opened significantly lower, and that low was below the support line that had started January of 2023. On a day where the market sold off big, AMD opened on its lows and rallied higher. Throughout the day the stock was trading higher after the open. Though the stock opened at a low, this is bullish behavior once the stock opened and traded higher throughout the day.

Given that the stock opened below the support line, the stock rebounded to regain the support line and trade higher. Monday’s trading volume was slightly above average, so these are signs that this bullish behavior can continue, and a rally in this stock can occur.

What to lookout for

If one were to draw in the support line that started in January 2023, and connect the highs from March 8, 2024 and July 12, 2024, a symmetrical-ish triangle is forming. Keep an eye on the support line, if AMD breaks below the support line, expect a new bearish trend to emerge. A break to the resistance of the triangle, that can signal the current bullish trend can continue.

NOTE:

Please trade responsibly, and always manage your risk to your liking. Chart patterns, quantitative analysis, and other previous data DOES NOT guarantee future results. Please trade with caution.