Advanced Micro Devices

Another under-$10 name that could be gearing up for some decent upside is Advanced Micro Devices ( AMD), a global semiconductor company with facilities globally. This stock is out the gate strong in 2012, with shares up over 40% so far.

If you take a look at the chart for Advanced Micro Devices, you'll notice that this stock has been uptrending strong since the start of the year, with shares soaring from around $5 to a recent high of $8.35 a share. During that run-up, this stock has consistently made higher lows and higher highs which is bullish technical price action. That said, this stock just ran into selling pressure at $8.33 to $8.35 a share, and has pulled back to its 50-day moving average of $7.59 a share. If that 50-day and recent low of $7.52 can hold up here, then AMD could be a good buy entry.

Traders should now look for long-biased trades in AMD if it can manage to continue its trend above $7.52 a share with strong upside volume flows. If that level does hold up for AMD, then this stock should re-test its recent highs of $8.33 to $8.35 pretty quickly. If we get that move to the highs, then watch for a high-volume breakout to trigger over $8.35.

Look for volume on that move that's near or well above its three-month average action of 16.4 million shares. Target a run up towards $9.17 to $9.60 if that breakout triggers with volume soon.

AMD shows up on a recent list of 10 Stocks That Boosted First-Quarter Mutual Fund Returns.

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