AMD Stock Price Analysis: Key Levels to Watch Amid 28% Decline
Stocks in chipmaker AMD have experienced a rollercoaster ride this year, with shares down 28% from their March high. After a strong start fueled by Wall Street’s AI wave, investors are now questioning the company’s ability to compete with tech giant Nvidia in the AI chip market.
Technical Analysis Overview
AMD shares closed at $164.31 on Tuesday, showing a 4.2% gain. However, the stock has faced significant volatility in recent months. A closer look at the technical analysis reveals some key levels to watch out for.
Consolidation Within Symmetrical Triangle
AMD shares have recently been consolidating within a symmetrical triangle pattern. This formation typically precedes a trending move in the direction of the breakout or breakdown. The current price is trading above both the 50- and 200-day moving averages towards the upper trendline of the symmetrical triangle.
Key Levels to Monitor
If AMD breaks out of the symmetrical triangle pattern, the price could initially climb to $184. This level may act as resistance due to a horizontal line connecting prices from January to April. A successful close above $184 could pave the way for a retest of the all-time high at $227.30.
On the other hand, if AMD shares break down from the symmetrical triangle, investors should keep an eye on the support zone between $132 and $116. This area has historically attracted buying interest from various peaks and troughs formed between May and December last year.
Conclusion
While AMD shares have faced a significant decline from their March high, technical analysis suggests potential opportunities for both bullish and bearish scenarios. Investors should closely monitor key levels such as $184 and the support zone between $132 and $116 to make informed decisions about their positions in AMD stock.
The information provided in this article is for informational purposes only and should not be considered as investment advice. Readers are advised to conduct their own research and consult with a financial advisor before making any investment decisions.
As of the date of writing, the author does not hold any positions in AMD or related securities.
Original article: Investopedia
