AMD's Stock Becomes Overbought And Heads Toward Resistance

Advanced Micro Devices Inc. AMD shares are trading higher Wednesday after the company succeeded in expanding its data-center chip market share from 1.8% in 2018 to 8.9% in the first quater

The company is also popular in Reddit’s WallStreetBets and is getting pushed by retail traders.

Advanced Micro Devices was up 4.3% at $93.37 at last check.

Advanced Micro Devices Daily Chart Analysis

• Shares have been trading in what technical traders call an ascending triangle pattern. Shares recently were able to find support at the higher low trendline.
• The stock is trading above both the 50-day moving average (green) and the 200-day moving average (blue), indicating the sentiment in the stock is bullish.
• Each of these moving averages may hold as an area of support in the future.

Key Advanced Micro Devices Levels To Watch

• The stock could see a breakout in the coming weeks as long as the higher low trendline is able to hold.
• The $100 level has held as resistance in the past. The higher low trendline is building up to this level and the stock may see a breakout if it can cross above this resistance level.
• The Relative Strength Index (RSI) has been steadily moving up throughout the past couple of weeks and now sits at 76. This means the stock has entered the overbought range and shows there are now many more buyers than sellers.

What’s Next For Advanced Micro Devices?

Bullish traders would like to see the stock continue to hold above the higher low trendline. If the stock can continue to hold the trendline, bulls would then like to see the stock break out above the $100 level. If the stock can consolidate above the $100 level, it may see a further bullish push.

Bearish traders would like to see the stock fall below the higher low trendline. If the stock could hold the higher low trendline as resistance, then the stock could be ready to see a bearish push.