Breaking Down AMD's Technical Levels

Advanced Micro Devices, Inc. AMD is having another rough day. The stock fell nearly 4.7 percent in the wake of Ryzen’s somewhat disappointing performance thus far. AMD’s CEO told CNBC on Friday that Ryzen’s poor gaming performance will be fixed “in a matter of weeks and months.”

At this point, AMD bulls are understandably nervous about just how low AMD stock can go and whether its incredible bull run is finally over. AMD shares had soared 586.2 percent in the past year headed into March and the launch of its new Ryzen processors. With the stock’s valuation already extended to say the least, it’s not surprising that the negative Ryzen reviews have AMD shares down 16.7 percent in the first four trading days of March.

As if investors weren’t concerned enough at this point, AMD’s largest investor, Mubadala Development, cashed out 45 million shares on Friday at a price of $13.70. Since Mubadala’s dump, AMD’s share price hasn’t come anywhere close to regaining the $13.70 level.

While there may be no obvious technical significance to the $13.70 number, it likely serves as a mental barrier for investors moving forward. It may be difficult for buyers to justify pulling the trigger at a price at or above the level the company’s largest investor was recently selling, especially after the stock already gained more than 500 percent in a year.

In the meantime, technicians will be closely watching the $12.10-$12.40 level for possible support. AMD’s 50-day simple moving average rests at $12.10 and $12.42 represent its 2016 high.

At time of publication, the stock traded down 1.5 percent at $12.83.

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