While the bulls may have wanted a more spectacular post-earnings reaction, how much can they really ask for?
AMD stock has rallied in 11 of the past 12 sessions, with the one down day in that stretch coming in at a 0.09% decline.
At today’s high, the stock was up 23% during that stretch. So even after a top- and bottom-line beat, it’s hard to have too high expectations for this stock.
However, we now have a great buy-the-dip candidate with AMD.
Trading AMD Stock
A slightly muted reaction to earnings isn’t necessarily a bad thing. But AMD's today indicates that the stock may be tired.
The good news is that even if the shares can’t rally on this news, the bulls are in a strong position to buy the dip.
AMD stock did a great job bursting over the “B” leg high near $114.50, after a powerful weekly-up rotation kicked things off. Readers of TheStreet caught that move and have been able to ride the powerful rally higher.
Now, though, the shares are stalling over the former high at $122.49 and are struggling with the $127 to $128 area.
From here, I’d love to see AMD stock find support in the $120 to $122.50 area, allowing some of its short-term moving averages to catch up.
Buying that type of mild dip could prove lucrative for a retest of the current highs.
Over $130 opens the door to the 161.8% extension of the current range near $136.50.
On the downside, a break of the 10-day moving average and $120 area could put $114.50 back in play, along with the 21-day moving average.
That, too, may prove to be a buyable dip, pending the overall market action.