Advanced Micro Devices Traders Mind The 'Goldman Gap'

Advanced Micro Devices, Inc. AMD shares have been drifting mostly sideways since Goldman Sachs issued a Sell rating and $11 price target for the stock back on April 6. Prior to the Goldman Sell rating, AMD had been one of the hottest stocks in the market, and Goldman missed the entire move.

From July 1, 2014, to April 5, 2017, AMD shares surged more than 235 percent. All the while, Goldman was on the sidelines. As expected, the Goldman sell rating initially sent AMD shares tumbling more than 7.0 percent. However, since the initial selloff, AMD hasn’t continued its bearish momentum. Instead, after drifting as low as $12.22, it has since rebounded back near the low end of the gap Goldman created when it initiated coverage.

Technical traders anticipating AMD will completely fill its Goldman gap are looking for AMD to trade above $13.68 and continue upward to at least the $14.10 level, the stock’s low point on the day prior to the Goldman note.

While there still may be a small window of opportunity for a short-term technical trade on AMD, the company’s earnings due out on May 1 will likely trump any short-term technical indicators and provide the best indication of whether AMD will be headed south toward Goldman’s $11 price target or north for a re-test of all-time highs at $15.55. 

Joel Elconin contributed to this article.

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