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Forbes Money How To Trade Chipmaker AMD Now Richard Henry Suttmeier Contributor Opinions expressed by Forbes Contributors are their own. Following Jun 28, 2023, 01:38pm EDT | Press play to listen to this article! Got it! Share to Facebook Share to Twitter Share to Linkedin (Photo by Justin Sullivan) Getty Images 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 Daily Chart for AMD Refinitiv 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. MORE FOR YOU Leak Reveals Enormous China Earthquake Could Be About To Hit The Price Of Bitcoin Ethereum BNB XRP Cardano Dogecoin Polygon And Solana German Economy Shrinks Faster Than Expected Are Private Credit s Double Digit Yields Too Good To Be True 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 Weekly Chart for AMD Refinitiv 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. Follow me on Twitter or LinkedIn . Richard Henry Suttmeier Editorial Standards Print Reprints & Permissions
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