One Real Money subscriber asked me what I liked in the semiconductor space in light of the good numbers from Taiwan Semiconductor (TSM) today.
I decided to check out Advanced Micro Devices (AMD) .
In this daily bar chart of AMD, below, we can see that prices made a correction in August and September but they have turned to the upside again. Prices are above the rising 50-day moving average line. The slope of the 200-day line is positive.
The On-Balance-Volume (OBV) line declined in line with the pullback in August and September and the line has begun to rise again. A rising OBV line is a sign of more aggressive buying.
The Moving Average Convergence Divergence (MACD) oscillator is crossing above the zero line for a new buy signal.
In this weekly Japanese candlestick chart of AMD, below, we see a positive longer-term picture.
In this daily Point and Figure chart of AMD, below, we see a $122 price target. Striking distance of new highs.
In this weekly Point and Figure chart of AMD, below, a $158 target is projected.
Bottom line strategy: Traders could go long AMD at current levels risking below $103. $122 and then $158 are our price targets for now.
