Advanced Micro Gives a Class on Candlesticks
Advanced Micro Devices has done more recently than just plunge to its lowest level in over two years. It’s also given some interesting lessons on candlestick patterns.
The heavily traded chip had a thick red bar on October 7 after preannouncing weak quarterly results. The next session saw prices inch lower but remain in a tight range. On October 11, AMD made a higher high and lower low: an outside day. The 12th was just the opposite, with a small inside candle. Then another outside day (bullish), a bearish inside day on Friday and a positive inside candle on Monday. Tuesday and Wednesday saw another pair of outside and inside moves.
All those candles, on the heels of four weeks of solid downside, could potentially suggest prices are stabilizing. Is all the bad news priced in before CEO Lisa Hsu announces final numbers on November 1?
Next, the patterns occurred around $59. That level held AMD in check February and July 2020 before excitement about 7nm Ryzen chips triggered a breakout. Could old resistance be turning into new support?
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The heavily traded chip had a thick red bar on October 7 after preannouncing weak quarterly results. The next session saw prices inch lower but remain in a tight range. On October 11, AMD made a higher high and lower low: an outside day. The 12th was just the opposite, with a small inside candle. Then another outside day (bullish), a bearish inside day on Friday and a positive inside candle on Monday. Tuesday and Wednesday saw another pair of outside and inside moves.
All those candles, on the heels of four weeks of solid downside, could potentially suggest prices are stabilizing. Is all the bad news priced in before CEO Lisa Hsu announces final numbers on November 1?
Next, the patterns occurred around $59. That level held AMD in check February and July 2020 before excitement about 7nm Ryzen chips triggered a breakout. Could old resistance be turning into new support?
TradeStation has, for decades, advanced the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
Important Information
TradeStation Securities, Inc., TradeStation Crypto, Inc., and TradeStation Technologies, Inc. are each wholly owned subsidiaries of TradeStation Group, Inc., all operating, and providing products and services, under the TradeStation brand and trademark. You Can Trade, Inc. is also a wholly owned subsidiary of TradeStation Group, Inc., operating under its own brand and trademarks. TradeStation Crypto, Inc. offers to self-directed investors and traders cryptocurrency brokerage services. It is neither licensed with the SEC or the CFTC nor is it a Member of NFA. When applying for, or purchasing, accounts, subscriptions, products, and services, it is important that you know which company you will be dealing with. Please click here for further important information explaining what this means.
This content is for informational and educational purposes only. This is not a recommendation regarding any investment or investment strategy. Any opinions expressed herein are those of the author and do not represent the views or opinions of TradeStation or any of its affiliates.
Investing in cryptocurrencies involves significant risks. Please click here for TradeStation Crypto’s risk disclosures on investing and trading in cryptocurrencies.
Investing involves risks. Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options, futures, or digital assets); therefore, you should not invest or risk money that you cannot afford to lose. Before trading any asset class, first read the relevant risk disclosure statements on the Important Documents page, found here: https://www.tradestation.com/important-information.
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