Advanced Micro Devices, Inc. (NASDAQ: AMD)

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. Its products include x86 microprocessors as an accelerated processing unit (APU), chipsets, discrete and integrated graphics processing units (GPUs), and professional GPUs; and server and embedded processors, and semi-custom System-on-Chip (SoC) products and technology for game consoles.

Take a look at the 1-year chart of Micro (NASDAQ: AMD) below with added notations:

AMD has once again run-up against its $34 resistance, a level that is also the barrier to a new 52-week high. In addition, the stock is climbing a clear trendline of support. At some point, one of those two levels will break, and that break should signal AMD’s next big move.

The Tale of the Tape: AMD has a 52-week resistance at $34, and a trendline of support. The possible long position on the stock would be either on a breakout above $34, or a pullback to the trendline. The ideal short play would be on a break of the trendline.

Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.

No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade. Capital preservation is always key!

Good luck!
Christian Tharp, CMT