AMD stock: buy or sell
Jul 29th, 2021
AMD stock brief
- AMD closed on Wednesday at $97.93 after skyrocketing a 7.58%.
- On Tuesday, AMD released its Q2 financial report
- From the chart point view, price is drawing a scaled uptrend since last May with higher tops and higher bottoms. This rally marked a 35.08% gain. On Wednesday AMD broke out above $95.44 giving a buy point
- The price is currently above the upper Bollinger band, which often indicates a short-term correction
- On Wednesday broke out above its latest top at $95.44
- Advanced Micro Devices, Inc. operates as a semiconductor company worldwide. The company operates in two segments, Computing and Graphics; and Enterprise, Embedded and Semi-Custom.
Should I buy AMD stock?
All successful traders recommend adhering to a trading strategy and not make decisions based on subjective opinions, rumors or feelings. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best
Is $AMD stock a buy?
Currently, AMD stock matches 2 trading strategies:
Uptrend buy setup
AMD stock continues to trend higher since last May and has marked an amazing 35.08% gain. Price marked a pull back in this uptrend at $84.24 on July 19, and since then it bounced up a 16.25%. Price just broke out above the entry point at $95.44, but it's still eligible. If price goes above $100.21, it would be better to wait to another pullback. If you decide to enter this trade, the suggested stop loss is at $85.90
|Buy setup||Buy point||Stop loss||Risk|
|Uptrend buy setup||$95.44||$85.90||10.00%|
ATH buy setup
All-time Highs is always an excellent buy point for those who like to buy high and sell higher. The good point of buying at ATHs is that shares price doesn't struggle with upper resistances, and usually it scales quickly. However, you must always be aware of a possible bulls trap that may trigger your buy order and then drops sharply. That's why a stop loss is so important. Price is now at 1.33% of all-time highs and it can breakout at any time, so if you want to trade this setup it's recommended to setup your order at $99.23. The stop loss would be placed at $89.31
|Buy setup||Buy point||Stop loss||Risk|
|ATH buy setup||$99.23||$89.31||10.00%|
Should I sell AMD stock?
Knowing when to sell a stock is even harder than knowing when to buy it. Trading strategies allow us to avoid rash decisions based on our personal moods or the noise that surrounds the market. We like very simple strategies to guide us on when is a good moment to sell a stock. Be aware that these strategies are not intended for shorting $AMD stock
A guiding principle is that you should not mantain an open trade that leads to higher than expected losses upon purchase. When to sell shares must always be ruled by the stop-loss (automatic or manual)
Is it time to sell AMD stock?
In the current situation of AMD there is not any eligible sell setup, so AMD stock holders with operations in profit can keep their positions
In the previous 30 days we couldn't find any rating for AMD
AMD stock analysis
Since last May, AMD has been drawing an uptrend that so far marked an amazing 35.08%. Rising peaks and troughs can be seen easily on a chart and how price action provided very few buy points on the breakouts. Latest low was on July 19, when price bounced at $84.24. AMD broke out above $95.44 (its last top) on Wednesday. That breakout was a good buying opportunity
Supports and resistances
The current resistances are:
The current support levels are:
Price levels both above or below the Bollinger Bands signal that the price has followed a strong trend that has led to extreme highs or lows. For this case, the price is beyond the upper band, and that should mean a possible short-term correction (at least) until it is under the band
Relative strength index
Broke through the 70 level Wednesday, marking a value of 71.24. Breaking through above the level of 70 is not a sell signal, as stocks can rise during several weeks being in the overbought zone
AMD stock price history
AMD started trading on Mar 17th, 1980 at $0.00 per share1. Since then, AMD stock has risen by -, with an average of 0.00% per year. If you had invested $1,000USD in AMD stock on the IPO, it would worth $inf today.
1: Adjusted price after possible price splits or reverse-splits
Price target for AMD stock
How much a stock will be priced tomorrow or next week is quite unpredictable. However, many stock price predictions are published every day by banks, financial institutions and independent analysts.
The following table shows the price forecasts published by analysts in the last month. If you are a small investor you shouldn't trade based on these projections.
We don't have any target price posted in the last 30 days for AMD.
Earnings and financials
Financial event was hosted by AMD ($AMD) on Tuesday after presenting the financial report. The company released earnings of $0.63 per share, surpassing the Wall St consensus estimate of $0.54 per share.In contrast, the EPS for the same quarter last year was $0.18, so current EPS means a gain of 250.00%. Turnover skyrocketed a 92.89% on an annualized basis in the , from $17.9B to $34.5B last quarter.
AMD ($AMD) is hosting the Q3 earnings call next October. Estimated for this quarter is $0.56, compared to $0.63 that was reported for Q2.
Important:The opinions expressed in this article are personal and not recommendations for you to buy or sell stocks. The author of this paper does not know the specific circumstances of the reader, his or her own finances or what is in his or her best interest at any given time. All users should speak with their financial advisor before buying or selling any securities Viewpoints are posted for educative reasons only
|Wednesday, July 28th, 2021|
|Day range||$89.65 - $98.71|
|Average true range||$2.99|
|50d mov avg||$84.84|
|100d mov avg||$82.17|
|200d mov avg||$84.92|
|Earnings date||October 25th, 2021|