Advanced Micro Devices Inc. calls for further and better particulars.

Oct 7th, 2013 – Comment

Currently the momentum indicators are both running flat while the shares have been knocking at the door of resistance that has formed at $4.00 but have failed to break above it convincingly.


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AMD LOGO

 

Hi Lou,

Could you please analyze AMD? The new xbox and play station 4 consoles are being released soon, both will be using AMD CPU’s.

Still unsure if I should invest though.

Thanks in advance!

Joe

 

Hey Joe,

 

Thanks for the assignment. Advanced Micro Devices Inc. (AMD NYSE) supplies central processing units and graphics processing units to the global computer sector. They have competition in both spaces and are still chewing down on the debt that they strapped on in 2006 paying $5.4 billion to  acquire ATI Technologies. They have also run into headwinds in the transition in consumer demand towards mobile devices, such as smart phones and tablets, and away from personal computers.

A study of the charts will help inform your decision regarding how to proceed with AMD.

 

AMD

The three-year chart depicts the retreat that started in April of 2012 when the shares were trading over $8.00. The decline took the stock down to a 52-week low of $1.81 in November of 2012 where it caught a bounce and headed to a 52-week high of $4.65 on July 18, 2013. Currently the advance has met resistance at $4.00.

The next flex point will come on October 17 when the company is scheduled to report its Q3 results. The reason to make a point of watching for the release quarterly results is that the lift in April of 2013 came on a beat of forecast for Q1 and the pullback in July, 2013 started on release of Q2. To be forewarned is to be forearmed.

 

 

 

 

AMD2

The six- month chart indicates that there are few signals suggesting a buy at this time.  The move higher in September was signalled by the MACD and the RSI lifting the shares above the 50-day moving average. Currently the momentum indicators are both running flat while the shares have been knocking at the door of resistance that has formed at $4.00 but have failed to break above it convincingly.

It would be advised to track AMD to the Q3 release on October 17 and see what the signs along the trail are telling us. At this time I believe the message is be patient.

Make it a profitable day and happy capitalism!

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