Stock of the day: AMD

In today’s stock of the day, we take a look at Advanced Micro Devices (AMD) following its recent earnings release. The chipmaker reported results slightly better than expected after the market closed yesterday. While the surprise wasn’t dramatic, investors reacted modestly positively, with AMD climbing about 1.7% in pre-market trading.

The post-earnings movement is restrained for now, but the technical chart paints a promising picture for buyers.

What we see on the daily chart is a clear downtrend, defined by a purple descending trendline, and a crucial horizontal support level around $96.70, marked in orange. This level previously acted as support in mid-March and resistance in mid-April. Importantly, the price is now back above this level, signaling the first bullish step in potentially reversing the trend.

However, for a true buy signal to emerge, bulls need to take one more step: the price must close the day significantly above the purple downtrend line. A higher opening gives buyers a head start, but momentum must be sustained throughout the session to confirm the breakout.

If that happens, AMD could be setting up for a new upward wave, breaking free from the months-long bearish grip. For now, keep a close eye on today’s closing price—it may define the next major direction.

Source: https://www.axiory.com/analytics/stock-of-the-day/stock-of-the-day-amd-5