Stock of the day: AMD

Advanced Micro Devices, commonly known as AMD, has caught the eye of many in recent months, and for good reason. Since October 2022, the tech company’s stocks have been on a consistent upward trajectory. This ascent, however, hasn’t been without its hiccups, manifested as intermittent bearish corrections.

Of these corrections, the one that began in mid-June stands out both in its duration and magnitude. Unlike its predecessors, this bearish phase has persisted, and interestingly, it has taken the form of a wedge, discernible by the red lines plotted on its chart. This structure suggests that the current downward movement is consolidating, implying an impending significant breakout – either upward or downward.

Now, here’s where things become particularly riveting. In its latest trading activities, AMD is brushing against the lower limit of this wedge. Concurrently, it’s flirting with two other crucial technical markers: a horizontal support set at $102 and the 38.2% Fibonacci retracement level. When combined, these pivotal points create an orange-hued zone on the chart, a region that now holds immense significance for traders and investors.

How AMD reacts to this orange zone could set the tone for its medium to long-term direction. A conclusive end-of-day close beneath the wedge’s lower red line and the orange support territory would sound alarms for the bulls. Such a move would not just denote a breach of crucial supports, but it would also telegraph a compelling bearish narrative, making it an optimal selling point for many.

On the flip side, should AMD muster a rebound from this juncture, accompanied by a resounding bullish pattern, it would likely pique the interest of those looking to buy. This reaction would hint at the stock’s resilience and its potential to commence another bullish chapter.

Source: https://www.axiory.com/analytics/stock-of-the-day/stock-of-the-day-amd-1