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AMD Stock - Next Stop Is $100

Advanced Micro Devices is trading higher after better-than-expected earnings. Now AMD stock is heading to $100 (or higher).

As we near the end of the month, Advanced Micro Devices  (AMD) - Get Advanced Micro Devices, Inc. Report is making another push higher.

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.

Advanced Micro Devices is a holding in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells AMD? Learn more now.

Trading AMD Stock

Daily chart of AMD stock.

Daily chart of AMD stock.

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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.

Nvidia  (NVDA) - Get NVIDIA Corporation Report went on a powerful run earlier in the year. Perhaps now it’s time for AMD to do the same thing.

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. 

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