AMD Preparing To Break Out Of A Bullish Flag Pattern: Technical Analysis - Advanced Micro Devices (NASDAQ

Advanced Micro Devices Inc. (NASDAQ:AMD) shares are trading higher Tuesday in sympathy with Micron Technologies Inc. (NASDAQ:MU) after Micron reported better-than-expected financial results and reported revenue guidance above estimates. The overall market is rebounding after slumping on Monday.

AMD was up 5.74% at $143.60 at time of publication.

AMD Daily Chart Analysis:

Shares broke out of a pennant pattern in late October of this year, and now are nearing resistance in what traders call a bullish flag pattern.
The stock is trading above both the 50-day moving average (green) and 200-day moving average (blue), with the 50-day now higher than the 200-day moving average. This indicates the sentiment is turning bullish, and each of these moving averages may hold as an area of support in the future.
The Relative Strength Index (RSI) has been curling higher the past few days and now sits at 52. This shows that there is now more buying pressure in the stock than there is selling pressure.

What’s Next For AMD?

After breaking out of a pennant pattern and pushing higher, the stock needed a consolidation period. AMD is currently in the consolidation stage and trading within a flag pattern.

Bulls are looking to see the stock break above pattern resistance and for the stock to make another bullish run. Bears are looking for the stock to continue to trade within the flag pattern and drop until it push back inside the pennant pattern.

AMDAdvanced Micro Devices Inc

$422.161.96%

Overview

MUMicron Technology Inc

$720.303.09%

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