In our March 31 review of Advanced Micro Devices (AMD) we wrote that "AMD has turned down from a lower high. A retest of the $100 area is now likely and a close below $100 is likely to precipitate further losses. Avoid the long side of AMD."
Let's check out the charts again.
In this updated daily bar chart of AMD, below, we can see that in early April AMD closed below $100 and a deeper decline ensued. Prices are trading below the declining 50-day moving average line. The 200-day moving average line is also in a decline.
The On-Balance-Volume (OBV) line has made new lows this month and tells us that sellers of AMD have been more aggressive than buyers. The Moving Average Convergence Divergence (MACD) oscillator is bearish.
In this weekly Japanese candlestick chart of AMD, below, we can see that prices are trading below the declining 40-week moving average line. Trading volume has been very heavy the past few months but that has not helped the price action. The OBV line has shown weakness since November. The MACD oscillator is bearish.
In this daily Point and Figure chart of AMD, below, we can see a downside price target in the $67 area.
In this weekly Point and Figure chart of AMD, below, we can see a possible price target in the $51 area.
Bottom line strategy: Shares of AMD could make a bounce at any point in time but the trend is down and I would not try to buck it right now. Avoid the long side of AMD.
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