The Advanced Micro Devices Inc. (AMD) is attracting investor attention in December because of a well-known pattern of price rallies. NASDAQ: AMD share price is up after it revealed its Q3 results in early November. After publicly publishing the earnings and revenue, traders were not sure about the directional trend, thus November 2 was the most volatile trading day in the last 30 days when the trading volume was recorded at $142.6 million.
According to AMD stock price action, buyers are waiting for a bullish breakout above a longer term bearish pattern. As of now, the market capitalization is seen at $120.89 billion. However, buyers have struggled since November 2021 when AMD share price hit its peak. Later, profit booking led to a sharp sell-off in the market which has not ended yet.
Price action drew a downsloping parallel channel on higher time frame. Aside from the bearish pattern, buyers had a nice gain in their portfolios in November as ADM stock price rose 29.25%. This incredible rally took a pause at 0.236 level (near $80 level) of fib retracement. Therefore, buyers often got higher price rejection at $80 resistance level.
In the letter of 2 November, the global market was neutral and NASDAQ closed its weekend with a 0.18% drop at 11,461.5. But AMD stock price fell 3.23% and squared off at $74.98 mark. For the past several days, share value has traded into a sideways trend close to resistance trendline of the bearish channel. In addition, trading volume bars show selling pressure, so buyers should be aware of any major price decline.
On a daily basis, buyers have already seen bullish signals from the EMA ribbons. At that point, AMD stock remains above the green moving lines of the EMA ribbon indicator. But the red zone of volatility is yet to be broken. The RSI is showing slight downside as its peak is forming a lower high.
Conclusion
Amidst the roller coaster ride, the $70 level seems to be supporting the short term outlook for ADM stock price. Above the 0.236 Fibonacci retracement level, the bulls will propel the asset towards the conceptual round level of $100, with buyers waiting for a sustainable breakout above the bearish pattern.
Technical Levels
Support level – $70 and $50
Resistance level – $80 and $100
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational ideas only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
Source: https://www.thecoinrepublic.com/2022/12/03/amd-stock-price-intent-100-mark-christmas-celebrations-is-on-the-horizon/