Shares of chip maker Superior Micro Gadgets (AMD) have traded decrease since early December, however traders haven’t been drawn to the lengthy facet. Sadly additional declines look probably within the months forward. Let’s verify on the charts.
On this every day bar chart of AMD, beneath, we will see that costs have made a brand new 52-week low. Costs are buying and selling beneath the declining 50-day shifting common line and beneath the declining 200-day line. Buying and selling quantity has been very energetic since February however it has not generated a sustained advance and the inventory appears to have turn into a buying and selling automobile for up and down swings. The On-Steadiness-Quantity (OBV) line has been making decrease lows for the previous 12 months confirming the value declines as extra quantity is traded on days when the inventory has closed decrease. The Shifting Common Convergence Divergence (MACD) oscillator is bearish.
On this weekly Japanese candlestick chart of AMD, beneath, we see a chart that’s pointed decrease. Costs are in a downward pattern as they commerce beneath the negatively sloped 40-week shifting common line. The newest candles have made new lows for the transfer down and have but to begin a backside reversal sample. The weekly OBV line reveals weak point from November. The MACD oscillator is beneath the zero-line in a promote sample.
On this every day Level and Determine chart of AMD, beneath, we will see a possible draw back value goal within the $47 space.
On this weekly Level and Determine chart of AMD, beneath, we will see a value goal within the $31 space.
Backside line technique: The value of AMD has been minimize in half this yr however that has not motivated traders to turn into patrons sadly. Additional declines are probably on this present bearish atmosphere. Keep away from the lengthy facet of AMD.