Is Advanced Micro Devices Inc. Catching Momentum from Crucial Support Zone?

Source: Macro photo, Shutterstock


  • Advanced Micro Devices (NASDAQ: AMD) gained 5.68% percent in the last trading session and was one of the top gainers in the NASDAQ 100 index.
  • Last week, AMD had pierced through a downward trendline and is currently for the past 2 weeks above the breakout level.
  • AMD prices are trading above the horizontal trend line support of USD 73.85 level on the weekly chart and getting support from the 50-period SMA.
  • The next immediate resistance appears at USD 87.34 followed by USD 94.28 levels.

Advanced Micro Devices Inc. (NASDAQ: AMD) has gained upside momentum from the crucial support levels of USD 77.94 tested on 08 March 2021 and made a high of USD 83.95 on 15 April 2021, a gain of ~7.71 percent in just two trading session.

Processor, Image Source: © Kornwa |

On Thursday, the stock prices closed at USD 83.01 level, up by 5.68%, and was one of the top gainers in the NASDAQ 100 index. The stock outperformed some of its peers, such as NVIDIA Corporation (NASDAQ: NVDA) up 5.63%, and Intel Corporation (NASDAQ: INTC) up 1.29%.

AMD Price Action Analysis on a Weekly chart

Source: Refinitiv, Thomson Reuters; Analysis: Kalkine Group

AMD prices were trading in a symmetrical triangle pattern and recently broke a downward trendline resistance level of USD 81.09. Prices are sustaining above the breakout level for the past two weeks and recently took the support of the same falling trendline at USD 77.94 level. Prices are getting good participation as evident in the volume upsurge for the past three weeks.

On the technical indicator front, the momentum oscillator RSI (14-period) is trading at ~50 levels on a weekly chart. On the lower side, immediate support levels for the stock appear to be at USD 77.94 followed by USD 73.85 while stock might find stiff resistance at USD 87.24 followed by USD 94.28 levels.

AMD Price Action Analysis on a Daily Chart

Source: Refinitiv, Thomson Reuters; Analysis: Kalkine Group

The stock prices recently took crucial support of USD 73.85 level and started to move upward. The price is almost moving in a range of USD 73.86 - USD 84.38 for the past two weeks.

The stock price is well placed above its 21-period and 50-period SMA, on the weekly frame chart that might be supportive for stock prices in near future. Meanwhile, the momentum oscillator RSI (14-period) moved up to ~54 levels from the oversold zone, indicating positive momentum for stock prices. The prices are trading above the Parabolic SAR indicator, acting as an immediate support zone near the falling trendline. Volumes have increased sharply on 15 April 2021 along with the price and might support the stock in the coming trading sessions.

Based on the above chart and technical indicators analysis, Advanced Micro Devices Inc.’s price seems to be in the primary upward direction. Prices recently corrected and took the support from USD 73.85 level. The stock prices are currently heading towards the key resistance levels.   

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK