Chip-Maker AMD Filled The Upside Price Gap That Occurred On May 25.

Advanced Micro Devices

AMD
gapped higher on May 25, 2023 and set its 52-week high of $132.83 on June 13. The stock opened above its semiannual risky level at $131.50 that day. This day had a key reversal sell signal. The sell signal occurred when the day’s close of $124.53 was below the June 12 low of $126.40 after setting the high. Today the stock is trading around its quarterly pivot at $110.54. It’s annual pivot is $98.21.

The daily chart shows a golden cross that occurred at $77.97 on March 16, 2023. That’s when the 50-day simple moving average rose above the 200-day simple moving average. These averages are now at $105.78 and $82.56, respectively.

Beware that the weekly chart will be downgraded to negative on a close this week below its five-week modified moving average at $110.17.

AMD has a p/e ratio at 44.43% and does not offer a dividend, according to Macrotrends. The stock had beaten earnings-per-share estimates in nine consecutive quarters between July 2020 and August 2022.

The Daily Chart for AMD

Courtesy of Refinitiv Xenith.

AMD declined from $104.59 on August 4, 2022 to its 52-week low of $54.57 set on October 13, 2022. October 13 was a key reversal buy signal as the close was above the October 12 high after setting the low. This buy signal tracked the stock to its June 13, 2023 high of $132.83.

Note the golden cross that occurred on March 16, 2023 when the stock closed at $96.60. The horizontal line at $98.21 is the annual pivot which was a magnet between March 17 and May 16.

The middle horizontal line on the chart at $110.50 is the quarterly pivot, which has been a magnet since June 22, 2023.

The highest horizonal line at $131.50 is the semiannual risky level that failed to hold on June 13. This date ended as a downside key reversal day with the close at $124.53 was below the June 12 low of $126.40.

Today the 50-day and 200-day simple moving averages are at $105.76 and $82.55.

The Weekly Chart for AMD

Courtesy of Refinitiv Xenith.

The weekly chart for AMD will be negative given a close this Friday below its five-week modified moving average at $110.12. The stock is well above its 200-week simple moving average or ‘reversion to the mean’ at $82.32. The 12x3x3 weekly slow stochastic reading is declining. The stochastic measure scales from 00.00 to 100.00 with a number above 80.00 overbought and below 20.00 oversold. AMD’s reading is declining at 72.87, which is negative.

Trading Strategy: Buy AMD on weakness to its 200-day simple moving average at $82.56. Reduce holdings on strength to its semiannual risky level at $131.50.