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Why Advanced Micro Devices Is Trading Higher

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Joel Elconin is the co-host of Benzinga's PreMarket Prep, a daily trading idea radio show.

Advanced Micro Devices, Inc. (NASDAQ: AMD) shares are trading higher by $0.10 at $2.67 in Monday's session. The catalyst for the rally was a bullish article in Barron's over the weekend.

The article applauded the efforts of the company's CEO Lisa Su in revitalizing the company. By diversifying its product line, more sustainable growth may be end the result. That, coupled with $1 billion in new business, cost-cutting measures and better prices on credit default swaps, means AMD may be poised for a long-overdue rally.

Keep in mind, the issue is quite some distance off its all-time high from March 2006 ($42.70), and is much closer to its all-time low made in November 2008 ($1.62),

Technicians and momentum traders may be focusing on the psychological $3.00 level as a trigger point to enter on the long side.

It has not closed above $3.00 since October 8, when it ended the session at $3.28.

Posted-In: Pre-market outlookTechnicals Movers & Shakers Pre-Market Outlook Intraday Update Trading Ideas General

 

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