Technical Analysis – AMD stock in a downward path ahead of earnings
October 26, 2023 2:27 pm
AMD stock has generated a structure of lower highs and lower lows
Its close below the 200-day SMA deteriorates the outlook
Momentum indicators aggressively tilted to the bearish side
AMD’s stock has been forming a bearish technical pattern following its 2023 peak of 131.90 on June 13. In the previous daily session, the price closed below the 200-day simple moving average (SMA) and has been trading beneath it for two consecutive sessions for the first time since early March.
Should sellers attempt to push the price lower, the September low of 94.50 could act as the first line of defence. A break below that zone could send the price to its lowest levels since May, where the March resistance of 88.60 could provide downside protection. Failing to halt there, the price may test the May bottom of 80.80.
Alternatively, If the stock reverses back higher, initial resistance could be met at the previous support zone of 99.20. Conquering this barricade, the bulls could attack the October peak of 111.00. Even higher, the 118.80 hurdle could prove to be a tough one for the price to overcome.
In brief, AMD’s share price is set to post a fresh six-month low after the drop below the 200-day SMA shifted its long-term outlook to bearish. Can the firm’s earnings report next Tuesday halt the retreat?
AMD stock has generated a structure of lower highs and lower lows
Its close below the 200-day SMA deteriorates the outlook
Momentum indicators aggressively tilted to the bearish side
AMD’s stock has been forming a bearish technical pattern following its 2023 peak of 131.90 on June 13. In the previous daily session, the price closed below the 200-day simple moving average (SMA) and has been trading beneath it for two consecutive sessions for the first time since early March.
Should sellers attempt to push the price lower, the September low of 94.50 could act as the first line of defence. A break below that zone could send the price to its lowest levels since May, where the March resistance of 88.60 could provide downside protection. Failing to halt there, the price may test the May bottom of 80.80.
Alternatively, If the stock reverses back higher, initial resistance could be met at the previous support zone of 99.20. Conquering this barricade, the bulls could attack the October peak of 111.00. Even higher, the 118.80 hurdle could prove to be a tough one for the price to overcome.
In brief, AMD’s share price is set to post a fresh six-month low after the drop below the 200-day SMA shifted its long-term outlook to bearish. Can the firm’s earnings report next Tuesday halt the retreat?
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