BZ Chart Of The Day: Is AMD About To Break Out?

In the stock market, certain price levels are more important than others. Shares of Advanced Micro Devices, Inc. AMD may be about to break an important one, which could lead to a large move higher.

As you can see on the following chart, the $102 level has been important for AMD since last August. It provided support for the stock then. It also did earlier this year.

Now it's a resistance level. There’s a large number of sellers trying to sell their shares at $102, and they have kept a ceiling on the price.

But if AMD "breaks" this resistance and trades above it, it will illustrate an important dynamic. The sellers who created the resistance are gone. They have either finished or canceled their orders.

With this large amount of supply out of the way, buyers will be forced to pay higher prices to acquire shares. This could force the stock into a new uptrend.

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