Stock of the Day: AMD

By Tomasz Wisniewski|

Published: July 04 2022, 08:06 GMT+0

Stock of the Day: AMD

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We’re starting the first week of July with AMD and it’s not the first time we checkout this stock. Right now, AMD is trading very technically, so it can be a treat for every price action trader in the field.

Just look at the chart. We can see a huge head and shoulders pattern, which is responsible for the current slide. In addition, there’s a nice down trendline (black) and a very handsome flag (red lines), which was responsible for the bullish correction that ended in the middle of June.

The reason why we are returning to AMD is that after all this drop, the price is currently on an absolutely crucial horizontal support at 73 USD (green). This area, supported the price in 2020 and 2021 and is supporting AMD now. The future of AMD depends from what will happen on this support level. A breakout to the downside will bring us a strong sell signal. A bounce (possibly with some kind of a bullish pattern), will be a great buy signal, with and awesome risk to reward ratio.

Let’s see how traders will play this one.

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