SIA Chartsā Relative Strength rankings not only help investors to identify which stocks in a universe are outperforming and underperforming against their peers, but also when relative performance trends are changing.
Chipmaker Advanced Micro Devices (AMD) had struggled relative to its peers through the spring, taking longer to bounce back from a sector correction. Between early April and mid May, AMD sank down the rankings from the Green Favored Zone into the red zone. Over the last two months, itās relative strength has recovered and yesterday, AMD returned to the Green Favored Zone, finishing in 25th place, up 7 spots in the last week and up 15 positions in the last month.
Advanced Micro Devices (AMD) spent three months in correction/consolidation mode after peaking with a shooting star candle back in March. By May, support had come in near $145.00, establishing a higher low and since then, the underlying uptrend has been re-asserting itself.
Last week, AMD regained the $175.00 level, completing a bullish Ascending Triangle pattern and signaling the start of a new upswing. Upside resistance tests appear in the $200.00 to $210.00 range where a measured move, round number, and previous closing high cluster. Initial support appears at the 10-week moving average near $168.20.
A big spring pullback in Advanced Micro Devices (AMD) shares bottomed out back in May in a bear trap where they broke down by one row then reversed upward. This established a higher low and confirmed that the shares underlying uptrend remained intact. Since then, AMD has been recovering with the completion of two bullish Double Top breakouts combining into a Bullish Catapult. Initial upside resistance appears in the $200.00 to $212.20 zone, where a round number, vertical and horizontal counts, and a previous peak cluster, followed by $225.20 where a round number and a horizontal count converge. Initial support appears near $167.30 based on a 3-box reversal.
With a perfect SMAX score (which is a near-term 1 to 90-day indicator comparing an asset against different equal-weight asset classes) of 10 out of 10, AMD is exhibiting short-term strength across the asset classes.
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