As I’m digging through dozens, if not hundreds of charts today, I am coming across all types of opportunities. There are a ton of names that have retraced to support and bounced, names that are breaking through to all-time highs, and then there are names like Advanced Micro Devices (AMD). The chart looks terrible. The only thought I have here is, do you feel like trying to catch a knife?
Every pullback in this thing has been met with even more selling. Now, we’ve got AMD below the August 2024 lows. Next stop? October 2023’s lows near $95. The 50 and 200-day moving averages have been overhead since October’s earnings report. In a world with AI-fueled speculation, you’d think AMD would be given the NVIDIA treatment, not this.
Moving Averages: Bartosiak starts by examining the stock's moving averages, such as the 50-day and 200-day moving averages. He points out the significance of crossovers and divergences between these averages, which can indicate potential trend changes.
Support and Resistance Levels: Bartosiak identifies key support and resistance levels on the chart. These levels act as barriers that the stock price must breach or hold above, providing traders with critical decision points.
Chart Patterns: He discusses chart patterns like head and shoulders, cup and handle, or flags, and their relevance in predicting future price movements. These patterns can offer valuable insights into potential bullish or bearish trends.
Volume Analysis: He emphasizes the importance of volume analysis in confirming price trends. An increase in trading volume during a breakout or breakdown can validate the significance of a price move.
Dave Bartosiak's technical analysis approach adds depth to our understanding AMD’s stock chart. By paying attention to moving averages, support and resistance levels, chart patterns, technical indicators, and volume, he equips investors with a comprehensive toolkit for making well-informed decisions in the stock market. Remember, while technical analysis is a valuable tool, it's important to consider other factors like fundamental analysis and market sentiment before making investment choices.
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