Thursday, 13 July 2017

AMD - short term double top

Whilst the main market saw a day of minor chop, there was significant weakness within semi-conductor stocks, with Advanced Micro Devices (AMD) settling lower by a very significant -5.3% at $13.53. Near term outlook offers further weakness to rising trend, currently in the low $12s.. where the 50dma is lurking.

AMD, daily

AMD, monthly


AMD has got stuck again in the mid $14s, and we have something of a double top. A bearish MACD cross on the daily cycle will be viable within 1-2 days.

Seen on the bigger monthly cycle, the rising volume makes it clear how greatly recognised the company/stock has become within the mainstream. Price structure since the Feb' high is arguably a bull flag, which would be suggestive of mid term upside to at least $20... if not $25/30.

I continue to be suspicous that AAPL might place a bid for AMD later this year. At some point CEO - Tim Cook, will be under pressure to buy something, almost anything, to divert attention from the fact that the company is currently out of ideas.

To be clear, I am mid term bullish the stock, even though AMD has yet to prove itself with earnings. There are arguably better alternatives in MU, QCOM, NVDA, or INTC.