Anticipating a Breakout as Advanced Micro AMD Consolidates Recent Gains
We are watching Advanced Micro Devices (AMD) closely, as we’d like a breakout to add to existing positions. Any new additions would be a day trade to start, as outlined in the 60-minute chart below, while we look for a flag to form to confirm any potential swing trades. Reference the daily chart for swings.
Summary
Advanced Micro (AMD)
Technically speaking, price action is a bit extended following a 700% increase (0.01 vs. 0.08) in quarterly earnings. That said, AMD is trading between support pivots (23.75) and the post-earnings pivot high (25.14) set on Thursday.
- MACD and RSI suggest momentum is with the bulls.
- 20/50d moving averages suggest bullish trend developing
- Price consolidated for 3 months prior to earnings
AMD 60 minute chart supports price at 24.07, so we’d need to see pre-market trading stay above this zone for starters, with a stop just below 24.07.
In addition, the 20ema is rising quickly to meet this flag.
ON Semiconductor also looks primed to move higher. Price action is back above its 200d, trading +3% in early trading.
- MACD is above its signal line and climbing.
We’ll wait for the Opening Range (9:30 ~ 10:00) as we’d like to see semiconductors move together as a group before initiating a trade on AMD. Stay tuned.
Futures are drifting lower after trading +2.50 earlier this morning.
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Happy Trading,
Vinny
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