Following strong earnings, that seems like the appropriate response.
The company reported a top- and bottom-line beat and delivered better-than-expected guidance for next quarter. Further, management lifted its full-year revenue forecast.
It’s actually ridiculous that the stock dipped in early trading, providing investors with an excellent buying opportunity.
As I highlighted earlier this month, AMD has been consolidating for almost a year now. Given that observation along with the solid quarterly report, that should be enough of a catalyst to drive AMD to $100 and potentially beyond.
After rallying about 2.5% in the opening minutes of Thursday's session, AMD traded lower, ultimately falling 3% from Tuesday’s close at its lows. Shares are now up more than 5%, though.
Trading AMD Stock
Amid some of the volatility earlier this month, AMD gave bulls a nice “ABC” correction down to the 200-day moving average.
Even though that knocked the stock back below prior range resistance near $87 and the 61.8% retracement near $89, the stock was able to find support near this vital moving average and along the topside of prior downtrend resistance (blue line).
With Wednesday’s post-earnings pop, AMD stock is hitting multi-month highs.
Shares not only dipped to and held the 21-day moving average - just as the stock did on Tuesday - but it’s also pushing through the $95 resistance area.
As for the upside, that leaves the current high at $99.23, along with $100 as the next upside target. Above $100 and investors may turn their attention to the 161.8% extension up near $115.
If it can’t and the rally fizzles, let’s look for the 21-day moving average to remain as support. Below puts the $87 to $89 area back on the table.