CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
US English

AMD Advance Above Breakout Line

By News

11:23, 10 October 2023

Any material provided is for information purposes only and is not investment advice. Any opinions that may be provided are not a recommendation by Capital Com or its agents. We do not make any representations or warranty on the accuracy or completeness of the information that is provided. If you rely on the information on this page then you do so entirely on your own risk.

U.S. chip maker, AMD’s recent price action indicates that its long-term uptrend may be kicking back in.

Having hit highs of $130 in June, the shares have undergone a prolonged period of consolidation which has seen the shares pull back to a confluent area of support.

The shares have completed a 38.2% Fibonacci retracement from the key October lows, and a 61.8% Fibonacci retracement from the May lows. This Fibonacci cluster coincided with a key level of horizontal support created by the March swing highs.

Last month, the shares briefly broke below horizontal support, but rallied from the 200-Day Moving Average. The rally was strong enough to reclaim support and break above the descending retracement line.

With short-term momentum now realigned with the bigger picture trend, probabilities should favour upside continuation.

AMD Daily Candle Chart YTD


Risk management

Those looking to take this trade could place stops back below the cluster of horizontal support levels.

For targets, traders should use the swing resistance levels created during AMD’s prolonged period of consolidation – ultimate targets would be a retest of trend highs.

Please note AMD are set to release Q3 2023 Earnings on Monday, October 30th.

It is also worth noting that AMD’s share price will be sensitive to global macro-economic data and events.

Related topics

Rate this article

Capital Com is an execution-only service provider. The material provided in this article is for information purposes only and should not be understood as investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents and has not been prepared in accordance with the legal requirements designed to promote investment research independence. While the information in this communication, or on which this communication is based, has been obtained from sources that believes to be reliable and accurate, it has not undergone independent verification. No representation or warranty, whether expressed or implied, is made as to the accuracy or completeness of any information obtained from third parties. If you rely on the information on this page, then you do so entirely at your own risk.

Still looking for a broker you can trust?

Join the 630,000+ traders worldwide that chose to trade with

1. Create & verify your account 2. Make your first deposit 3. You’re all set. Start trading