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.
In todayās edition of the Daily Stock Report, we are going to feature Advanced Micro Devices Inc (AMD). We last looked at AMD last summer on July 16, 2024, when the Electronic and semiconductor stocks were all a rage with investor frenzy. However, market conditions change and money flows in and out of sectors continually adapt to these changing market conditions and investor sentiment. The power of the SIA platform is its ability to identify these changing money flow trends; as the whole Electronics and Semiconductor sector has fallen to an unfavored rating in SIAās Market sector report at the 30th spot out of 31 sectors.
In looking at the attached relative strength matrix position chart of AMD in the SIA S&P 500 index report, we see the shares entered the Red unfavored zone on July 19, 2024, at a price of $151.58 indicating there was no relative strength in the name and money flows were being attracted elsewhere. As of yesterdayās close, we see the shares are at $86.26 representing 43% loss since the unfavored rating. Currently, the shares reside in the Unfavored Zone at the #473 spot in the SIA S&P 500 Index report, down 3 spots in the last week.
In looking at the attached candlestick chart, we see a bearish Gravestone Doji candlestick form in March 2024, where the shares shot up to almost $230.00 only to succumb to heavy selling pressure and āsellersā took hold and drove the weekly closing price to approximately $207.00 near the weekās low. Since that time, the shares have been in a steady down trend with a consistent pattern of lower highs and lower lows. Currently the shares are at $86.26 with no sign of a bottom as yet. The shares may find support at the $70 area with resistance at $110.00.
In looking at the Point and Figure Chart, we see a similar pattern as the shares peaked in March 2024, at the $208.00 area, then a steady downtrend ensued. Of further note, we see earlier this month the shares couldnāt find support and broke below its long-term uptrend line at the $98.00 level. In looking at potential next support levels, we can see some support at $77.29, its recent low. If that fails to hold, next support will not be until $62.16 and below that, $55.20. To the upside, if the shares can rally, resistance is at its 3-box reversal of $94.22 and above that, $98.02 which closely coincides with the $100 whole number and psychological level.
With a SMAX score of 2 out of 10, AMD is not showing much short-term strength against the asset classes.
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