AMD’s Prices Are Micro Now, Too

Shares of chip maker Advanced Micro Devices (AMD)  have traded lower since early December, but investors have not been attracted to the long side. Unfortunately further declines look likely in the months ahead. Let’s check on the charts.

In this daily bar chart of AMD, below, we can see that prices have made a new 52-week low. Prices are trading below the declining 50-day moving average line and below the declining 200-day line. Trading volume has been very active since February but it has not generated a sustained advance and the stock seems to have become a trading vehicle for up and down swings. The On-Balance-Volume (OBV) line has been making lower lows for the past 12 months confirming the price declines as more volume is traded on days when the stock has closed lower. The Moving Average Convergence Divergence (MACD) oscillator is bearish.

In this weekly Japanese candlestick chart of AMD, below, we see a chart that is pointed lower. Prices are in a downward trend as they trade below the negatively sloped 40-week moving average line. The latest candles have made new lows for the move down and have yet to start a bottom reversal pattern. The weekly OBV line shows weakness from November. The MACD oscillator is below the zero-line in a sell pattern.

In this daily Point and Figure chart of AMD, below, we can see a potential downside price target in the $47 area.

In this weekly Point and Figure chart of AMD, below, we can see a price target in the $31 area.

Bottom line strategy: The price of AMD has been cut in half this year but that has not motivated investors to become buyers unfortunately. Further declines are likely in this current bearish environment. Avoid the long side of AMD.