Advanced Micro Devices
Last up is Advanced Micro Devices (AMD), a name that's been seeing some hefty volatility of its own in 2013. Shares spiked in late April on potential buyout rumors, and they've been stuck at higher levels ever since. Now, after trading sideways for the last two months, shares look ready to make a move.
AMD has been forming a rectangle pattern, a setup formed by a horizontal resistance level above shares and a horizontal support level below shares. The pattern gets its name because it boxes in price action, and it's a common occurrence after a major move like AMD saw in April and May. It gives the stock a chance to bleed off momentum as buyers and sellers figure out their next move.The buy signal for AMD comes on a move through resistance at $4.20, a level that it's testing this morning. Another resistance level at $4.40 could present another barrier for price action -- but it gives traders a chance to scale into the position as AMD moves through its resistance range. If you decide to be a buyer, just be sure to keep a tight stop. If AMD falls through $3.80, its chances for upside are broken. To see this week's trades in action, check out this week's Must-See Charts portfolio on Stockpickr.-- Written by Jonas Elmerraji in Baltimore.
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