Tuesday's Market Minute: AMD Heads Into Earnings

Advanced Micro Devices AMD reports earnings this afternoon as the chipmaker finds itself in an interesting technical position. Things were looking significantly worse last week, as shares logged a -4.3% decline that took them below both the 63-day and 252-day Exponential Moving Averages as well as the yearly Volume Profile’s Point of Control on a candle that closed near the lows of the day.

However, price found some footing near the site of an upward trendline that began with the lows from mid-February and began a roughly +7% rally that broke through the two previously mentioned moving averages, as well as the 21-day EMA and a downward sloping trendline that began off the March highs.

Despite the upswing, the overall picture is fairly neutral heading into earnings. Momentum is flat according to the Relative Strength Index (RSI), which closed at roughly the 50 level, which is not necessarily unusual for a stock heading into an earnings announcement.

Consider that the weekly option series that expires on Friday shows an approximately +/-6.70 potential move. In terms of support and resistance, the nearest point to watch is the 21-day EMA just below the 90 mark, which is roughly where price closed yesterday.

Below that, watch the trendline near 88, and the 63-day EMA around 87. If earnings surprise to the upside, watch the old highs near 96.

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