Shares have risen about 3.5% on Tuesday as the stock is hitting its highest levels since February.
The stock was flirting with a move over range resistance on Monday, but is really pushing higher on Tuesday. The rally comes on positive reports regarding U.K. regulators and AMD’s acquisition of Xilinx (XLNX) - Get Report.
For its part, Xilinx shares are also hitting the highest levels since February.
Nvidia and the VanEck Semiconductor ETF (SMH) - Get Report both hit new highs this week. With AMD stock continuing to consolidate and now making progress on its $35 billion acquisition, can it too break out to new highs?
Let’s look at the chart.
In July 2020, AMD stock exploded over $60 resistance, quickly climbing to a high of $87.29 in just a couple of weeks.
After that, the stock settled down, bouncing between $74 and $88. Eventually, AMD broke out to a new range, with $88 acting as support instead of resistance, and the $94 to $96 area acting as resistance.
Interestingly, support eventually gave way and AMD fell back into prior trading range.
As I mentioned in the opening part of the story, AMD is breaking out over $87 to $88 range resistance again as the stock is pushing to multi-month highs. It’s also pushing through the 61.8% retracement.
From here, bulls are looking for the $87 to $88 area to again turn from resistance into support. If that happens, the $94 to $96 area is certainly within reach.
If AMD can push through that zone, look for a test of the all-time high at $99.13 and then $100 above that.
Should shares really get moving - like Nvidia did - then the $115 level could be in play near the 161.8% extension.
On the downside, a move back below $87 needs to be met by support from the 50-day moving average. Otherwise, $80 could be on the table.