FEATURED CONTENT

Bull or Bear Market… Doesn’t matter

Kyle Dennis’ new, 5 Min Strategy is poised to double Your Money Weekly!

Michael S. made 173% with Dollar Ace. So can you!

 

Is it time to buy Advanced Micro Devices (AMD)?

Avatar ·

The story: Advanced Micro Devices Inc (AMD) has been getting crushed since reporting disappointing guidance in October 2017. Although AMD beat Wall Street estimates, its 35% gross profit margin forecast for the fourth quarter was below some analyst estimates, and the stock plummeted as a result. AMD shares have continued lower, but the stock has yet to find support and create a new base.

The details: On the daily chart of AMD, the shorter-term moving average is crossing below longer-term moving-average lines. This is a bearish signal, and AMD looks like it has a lot of room lower.

AMD

The death cross is signaling that AMD could fall to $10, the stock’s next area of support. However, one could argue that AMD is just pulling back before it continues higher. The stock was up nearly 300% in 2016, and it’s up over 50% in the last 12 months.

How I’m playing it: Based on the charts and the room to fall, I’m not buying AMD just yet. Instead, I’ll wait for AMD to form a bottom and find some support, followed by a bullish pattern, such as a rounded bottom on the hourly chart, with the shorter-term moving averages crossing back above longer-term averages.

#-#-#

Petra Hess runs PetraPicks.com. She is a technical swing trader and long-term investor in domestic and Canadian stocks and ETFs. At the time this article was published on RagingBull.com, she had no positions, options or open orders in ADM.

You may also like

Exclusive System Tracks Wall St. Insiders

“Dollar Ace Simply Exposes Information That Wall Street Wants To Keep Quiet” Said Kyle Dennis
“One member, Wesley M., has already reported 360%+ gains in just a few short days. Don’t miss this!”
(Reserve Access Now)

“What Recession?!” Jason Bond nets $55,060 in realized profit in One Day

After going 6 for 6 on profitable trades recently, we caught up with Jason to ask how he did it.
Check out Jason’s exclusive interview revealing this tightly guarded strategy. (Watch Now)

RagingBull.com Co-Founder, Jeff Bishop, Launches High Conviction Trade Service

“We listen to our clients and we give them EXACTLY what they want, so we designed a service to deliver 1 trade, 1 time a week, with a 100%+ PROFIT TARGET, directly to your inbox every Monday before the market opens. (Read More)

Be a Better Stock Trader, Starting Today

Get the expert insights, tips and strategies you need to optimize your trading skills and profiles
START NOW