Advanced Micro Devices
broke-out above its 200-day simple moving average on November 1, 2023, when this key average was $110.12. The stock traded as high as $227.30 on March 8, 2024, then declined to $159.31 on April 15, when its semiannual pivot at $161.28 became a magnet for that day. Not on the daily and weekly chart is the after-hours high of $130.61 set in reaction to earnings.
AMD is not cheap. Its p/e ratio is 83.73% and the company does not offer a dividend, according to Macrotrends.
The Daily Chart for AMD
Shares of AMD were tracking its 50-day simple moving average until the stock broke out above its 200-day and 50-day simple moving averages on November 1, 2023, when the 200-day was $100.12, and the 50-day was $103.22.
The March 8, 2024 chart high was $227.30 with the close that day at $207.39. This was a downside key reversal day as the prior day’s low was $208.22.
The horizontal lines in the chart from high to low are this week’s risky level at $189.40, the monthly risky level for April at $173.78, the semiannual pivot at $161.28, the annual pivot for 2024 at $148.49, and the second quarter value level at $119.04.
The Weekly Chart for AMD
The weekly chart for AMD is negative with the stock below its five-week modified moving average at $172.52. It’s well above its 200-week simple moving average or ‘reversion to the mean’ at $101.80. The 12x3x3 weekly slow stochastic reading is declining since the week of March 22. Stochastic readings trend between 00.00 and 100.00 with a reading above 80.00 overbought and a reading below 20.00 oversold. This week’s reading is declining at 35.52.
Trading Strategy: Buy AMD on weakness to its annual pivot at $148.49. Reduce holdings on strength to its monthly risky level at $173.78.