Chart of the Day: AMD Hits Resistance
We're watching this bullpen name, but sellers continue to press the stock down.
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Bullpen name Advanced Micro Devices AMD is building a nice base here above the $135 area, and the stock is likely at the top of the range around $165. That level also is where the 100 day moving average lives, which has been problematic for the stock penetrating to the upside.
Notice also that in mid April the 100 day represented a decision point, sellers took the ball and ran which helped push AMD substantially lower on heavy volume.
That strong turnover is key, the stock remains vulnerable to sellers until that $165 level is exceeded and confirmed — a couple of closes above there. For now, we are on the sidelines watching the name for a better entry point.
The indicators are mixed, with the MACD (moving average convergence divergence) and stochastics (momentum) rising up here into an overbought condition, but the parabolic SAR (stop and reverse) in the top pane is on a buy signal.
The candles, however, are bearish, pink and purple define the bearish condition based on the GoNoGo composite of indicators.
So, we are just going to wait. Considering we still have Nvidia NVDA in the portfolio, we have great coverage on semiconductors and artificial intelligence chips (AI).
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At the time of publication, TheStreet Pro Portfolio was long NVDA.
