AMD key time. Shares are falling in what traders call a descending channel after seeing a strong bullish run higher. The stock now looks to be in a period of consolidation as it trades within the channel. A break above resistance or support may hint that a further move in the same direction as the break may be coming.
The stock is trading above the 50-day moving average but below the 200-day moving average, indicating the stock should be consolidating. The 50-day moving average may hold as an area of support while the 200-day moving average may act as an area of resistance.
The Relative Strength Index has fallen slightly in the past few days and now sits at 42. This shows that the stock is seeing more sellers than buyers now after it fell below the middle line. If the RSI continues to dip, the stock may continue to sell and dip lower.
The stock is trading in a period of consolidation and could be due for a strong move if it is able to cross above the resistance level or falls below support. Bullish traders are looking to see the stock begin to form higher lows and break above the resistance level. Bulls then want to see the stock cross above the 200-day moving average and see the RSI cross above the middle line. Bearish traders are looking to see the stock continue to hold below the resistance and then go on to fall below the support. This could cause a further bearish move in the future.
