Advanced Micro Devices Has Improved: Watch These Key Trading Levels

 | Jan 12, 2018 | 12:11 PM EST
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We reviewed Advanced Micro Devices (AMD)  a little more than one month ago, and suggested that, "the pace of the decline has slowed from December but that is not enough technical evidence to really help out the charts of AMD. Sorry, but I don't find reasons to buy AMD here." Prices have risen from around $10 to around $12 in the past five weeks. Go figure.

Have the indicators improved enough to reconsider the long side? Let's check.

In this daily bar chart of AMD, below, we can see that prices are between the declining/flattening 200-day moving average line and the flat 50-day line. A close above the 200-day line or above $12.50 would help the technical picture. The On-Balance-Volume (OBV) line has been moving up since early December and suggests that buyers of AMD have been more aggressive. Overall since June the OBV line has been weakening. The trend-following Moving Average Convergence Divergence (MACD) oscillator signaled a cover shorts buy signal in the middle of December and this year has crossed above the zero line for an outright go long signal.

In this weekly bar chart of AMD, below, we can see that prices have rallied to the underside of the declining 40-week moving average line. The weekly OBV line has inched up the past month but has not made a new high. The weekly MACD oscillator looks like it could cross to the upside for a weekly cover shorts buy signal.

In this Point and Figure chart of AMD, below, we just look at the filtered price action without volume. The buy and sell parameters should be clearer -- strength above $12.30 and better above $12.54 should be bullish while weakness to $11.47 would be bearish, in my opinion.

Bottom line: AMD has firmed in the past month but it is just not yet at the point to push me to buy. Watch these levels: above $12.54 is positive and below $11.47 is negative.

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