BZ Chart Of The Day: AMD Slams Into Resistance

Shares of Advanced Micro Devices, Inc. AMD have slammed into a wall of resistance. This means they may not move much higher in the short run.

As you can see on the following chart, there is resistance for AMD around $86.50. A large group of investors are trying to sell shares around this level. This has kept a top on the price over the last week.

There is reason why $86.50 is a resistance level. It was a support level in late April and early May.

Now that the price is lower, many of the investors who bought the stock then are now looking at a loss. They decide to sell, but don’t want to lose money.

As a result, they put their sell orders at the same price that they paid for their shares. If there are enough of these remorseful buyers placing sell orders, it will convert the level from support to resistance.

That’s the case here.

To learn more about trading, check out the new Benzinga Trading School.

Posted In: Short IdeasTechnicalsMoversTrading Ideas

Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.

All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.

Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.

Rate collection and criteria: Click here for more information on rate collection and criteria.