Advanced Micro Devices ( AMD) corrected to the downside in the first half of December, but the shares have since firmed and look ready to make new highs in this new year.
Our last review of AMD was back on Oct. 14 where we wrote that, "Traders could go long AMD at current levels risking below $103. $122 and then $158 are our price targets for now." The shares quickly reached the $158 target and then corrected in December.
Let's check out the charts and indicators again.
In the updated daily bar chart of AMD, below, we can see that the shares tested the rising 50-day moving average line several times last month. Prices are comfortably above the rising 200-day line.
The daily On-Balance-Volume (OBV) line shows strength from May but a more balanced/neutral trend the past two months. The Moving Average Convergence Divergence (MACD) oscillator is just above the zero line and poised for a bullish signal.
In the weekly Japanese candlestick chart of AMD, below, we can see some upper shadows in November that preceded the decline in the first half of December. A long-legged doji with bullish confirmation in December marks a low on the chart below. AMD is trading above the rising 40-week moving average line.
The weekly OBV line shows a long-term bullish rise. The MACD oscillator is bullish despite some recent narrowing.
In this daily Point and Figure chart of AMD, below, we can see a potential upside price target of $201.
In this weekly Point and Figure chart of AMD, below, the software is projecting a $293 price target.
Bottom-line strategy: Traders could go long AMD at current levels. Risk to $132 and consider adding to longs above $165. The $201 area is our price target for now.
Right now I have more in cash, or equivalents, than in equities. Ever hear of a Wall Street guy saying that before?
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