Is AMD Share (NASDAQ: AMD) Napping Before a Breakout?

AMD ( Advanced Micro Devices) Inc. share is taking a soft breath above significant moving averages. Last month, the stock price faced a correction but gave a V shape recovery and sustained over the top. Although, with negative market sentiment, AMD did not affect much with holding the gains on the top. Moreover, the stock trades in the bullish territory near its major trendline. The upper trendline reacts as a barrier going above the bar for bulls, which, if it breaks, creates a price rally.

AMD share price took support on its 20 days EMA and looks strong over charts. The ongoing market weakness brought the stock price to comfort. However, the bull’s dominance can be prominently seen over the last few weeks.

AMD stock price was at $82.67 during Friday market sessions with a slight cut of 1.62%, while the delivery volume showed decent investors’ participation.

Will AMD scratch the major trendline ?

AMD stock faces an immediate hurdle of its major trendline, obstructing its way to delight. The bulls try harder to go above, but sellers persist below the trendline. However, price action indicates further delights are yet to come above the neckline breakout of $85. Above that trajectory, positive effects will lead prices to test the previous swings of $90 for the near term. Last week, RSI gave a positive crossover leading to a V-shaped recovery from $76, making a bottom. During the correction cycle, AMD stock formed a W pattern structure in the previous months and made a firm bottom near $50, where buyers accumulated stock price retaining previous marks.

More About AMD stock ( NASDAQ:AMD )

AMD stock, or Advanced Micro Devices, is an international semiconductor company. The giant works on four primary segments – data center, Clients, Gaming, and Embedded components. The company has strong fundamentals with a profit margin of 5.59% and revenue growth of 16% (YoY).

AMD Technical Analysis

AMD share on a 4-hour chart shows retracement and indicates pressure on bulls. The leading indicator gave negative signals toward correction. The RSI curve reversed from the top and showed a negative crossover in the last session. Furthermore, the MACD indicator noted a bearish crossover started forming red bars on the histogram. However, bulls maintain their grips above 20 days EMA and bring strength. Moreover, buyers eagerly await to transcend AMD price above $85 to catch strong bullishness.

Support Levels: $76 and $65

Resistance Levels: $88 and $100

Conclusion

AMD stock price persists in holding gains amid a falling market. The stock is facing an immediate hurdle in the form of its upper trendline. However, bulls continue to uphold, and a trendline breakout can be seen in upcoming sessions, leading to price rallies.

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.

Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing