AMD - Catch The Momentum?
Dear investors,
Welcome back to Thursday’s free newsletter, where we discuss investable assets by their history, current and future outlook with technical analysis.
Today we are talking about AMD, one of the best microchip producers in the world. With the pandemic, more people have switched to a digital lifestyle by buying computers and portable devices. Many of those computers has AMD chips in them.
In this newsletter, we are going straight to the charts to see if AMD has more room to grow.
Daily Chart
At the time of writing, AMD is trading at $144 a share and recently experienced a 20% correction. This correction occurred because of overextension on the price, but also on the technical indicators.
But now after this correction the technical indicators are at much better values to enter short to mid-term positions. Because of the curling MACD indicator moving upwards to a potential crossover and the RSI making higher lows again.
If we wanted to invest in AMD over the short to mid-term timeframe, we would wait for these possible options:
Waiting for the MACD to cross towards positive momentum to give us another confirmation that the stock is back to bullish price action.
Wait for a potential retest on the nearest indicated support, that would be around $122 a share.
Weekly Chart
If we zoom out to the long-term timeframe, we have established an ascending channel what started around 2016. We believe with this channel, you can have a good indication when to buy AMD for a long-term investment (green line) and when to take profit (red line).
This was the last newsletter of this year, we at Patellic hope you have a great Christmas and a wonderful new year!
We would like to thank you for your time reading our newsletter, if you found something interesting, consider to subscribe and share this newsletter with your friends. We would highly appreciate it!
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