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Nearest Resistance: $4.50
Nearest Support: $4
Catalyst: Buyout Rumors
Advanced Micro Devices(AMD - Get Report) rallied on a new set of buyout rumors. Today, shares are recovering from the optimism on high volume. After posting a big move higher in yesterday's market session, shares are only giving back 1.14% today, sliding to $4.35 as I write. That suggests that while Mr. Market is discounting the rumors a bit, he's not willing to ignore them at this point.
The rumors may be enough to make AMD complete a bottoming pattern, a welcome technical setup after shares have slid from prices above $8 in just a few months. A breakout above $4.50 resistance would complete a bullish tower bottom reversal pattern, giving traders a buy signal for shares.
Until that happens, hold off. Headline risk is pretty high in any name that has acquisition rumors swirling.
AMD shows up on a recent list of
3 Stocks to Sell if They Crash on Earnings.
To see these stocks in action, check out the at
Most-Active Stocks portfolio on Stockpickr.
-- Written by Jonas Elmerraji in Baltimore.