AMD Technical Analysis August 20, 2024Chart Overview (1-hour timeframe):
Trend: AMD is in an ascending channel with key resistance near $157.90 and support at $154.89.
Volume Profile: Strong support at $149.27, indicating a possible area for a bounce if prices decline.
MACD: Similar to NVDA, AMD is showing signs of potential exhaustion, indicating a possible short-term pullback.
Resistance Levels: $157.90 (key resistance).
Support Levels: $154.89, $149.27, and $145.19.
Trade Strategy:
For tomorrow: Consider shorting if AMD fails to break above $157.90, targeting $154.89. If the price holds above $157.90, a long position targeting $160.00 might be feasible.
For the week: A break below $154.89 could lead to further declines towards $149.27. On the upside, a strong move above $157.90 could propel the stock towards $160.00 or even $165.00 if momentum continues.
General:
Given the potential for increased volatility due to macroeconomic factors, it's important to keep an eye on news and market sentiment. It may be wise to use tighter stop losses and to take profits more quickly if you observe signs of market instability. Additionally, given the ascending patterns in both NVDA and AMD, be cautious of potential bearish reversals, especially if key support levels are breached.
