AMD's 20-day SMA is about to cross below its 50-day SMA. This might be viewed in a vacuum as bearish and when AMD has been trading below its 20-day when this crossover occurs, it has led to lower prices and a continued downward trend. However the few times it was trading above both averages when the cross over occurred, the stock went on huge runs including a 150% run and an 80% run.
My guess is this will play out like it has historically barring a general market debacle. Long AMD.
My guess is this will play out like it has historically barring a general market debacle. Long AMD.
Note
Correction 1: 20-week SMA and 50-week SMA were used to formulate this idea and are on the chart. I mistakenly said 20-day SMA and 50-day SMA which are not relevant.Update 1: Price is close to or at the crossover point. If it trades lower soon, it could mean that it will be below the 20-week SMA during the crossover and therefore not likely to break out based on my idea.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.