At the close last night, we saw a flurry of activity on AMD stock and options. Sweeps and blocks crossed the tape just before the close. In addition, Advanced Micro Devices (AMD) stock appears to be breaking out of a descending triangle pattern. Is this a reason to buy the stock? Let’s take the analysis a step further.
AMD and the Semis
The semiconductor group, in addition to AMD stock, suggests bullish continuation into next week. All but INSG, a 5G RF chip maker, are above the 21d and 50d moving averages.
AMAT, NVDA, and KLAC are exhibiting solid volume patterns of late.
AMD Activity MOC
Activity picked up on AMD options and stock at “market on close” (MOC).
AMD Stock Chart
Price action is clearing the largest volume by price (VBP) histogram on the left panel. This signifies a breach of the resistance, where higher price levels have less supply to slow the upward momentum. More on the Kirby.
Volume is increasing as the stock breaks out. MACD is above its signal line and bullish, while RSI and Stochastic both suggest a follow-through.
AMD Fundamentals and Institutions
Funds are increasing ownership every quarter, with 2316 firms owning a position. Earnings are projected to increase into 2021 having doubled (0.63 > 1.24) in 2020.
All things considered, AMD stock appears to be a buy at this time. What the indices do of course, will have a direct impact of futures prices.
Join us today in the trading room for our LIVESTREAM broadcast during market hours, as we consider trading AMD while navigating the current environment. Watch, listen, and trade from 9:20 AM to 4:15 PM Monday through Friday.
Happy Trading,
Vinny
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