AMD stock could be due for a strong bounce, as share prices are testing a long-term support area at the $3.70/share level. MACD has already reached the oversold zone, indicating that buying pressure could return soon.
RSI is also indicating that the selloff may be already overdone, as the oscillator has already reached the oversold zone. A bounce from the current price levels could take AMD stock to the 200 simple moving average resistance or the 50 SMA, which are near the $4.00/share level.
AMD Stock Outlook
Shares of Advanced Micro Devices, Inc. have been under heavy selling pressure recently as demand and revenues from its products have weakened. AMD recently collaborated with Canonical to provide one of the industry’s easiest ways to deploy an OpenStack private cloud, using AMD’s SeaMicro server. The company also signed a multi-year agreement with Synopsys which gives the former access to a range of Synopsys design IP including interface, memory compiler, logic library and analog IP for advanced FinFET process nodes.
AMD stock is projected to have a strong rebound next month, as holiday spending could start and boost sales of its products. Spending on PC gaming products and consoles could pick up and keep the shares supported.
On the other hand, a downside break of support could lead to new lows for AMD stock, which could see prices at $3.00/share sooner or later. A strong recovery, on the other hand, could lead to extended gains past the $4.00/share mark possibly until the $4.50/share level where it previously gapped down.
AMD is on a turnaround structure at the moment as it hopes to keep up with its industry competitors. However, it may take long before the benefits kick in, even as the company struggles to gain more market share and keep AMD stock afloat.
To contact the reporter of the story: Jonathan Millet at email@example.com