Hello fellow traders and investors, here's another trade idea. AMD has recently pulled back to the support area, if AMD makes a recovery to the take profit area it offers around a 25to 30% ROI .
Technicals: The Macd indicates that it's oversold The EMA's are in a downtrend The RSI is oversold
When To Buy: There are two options on where to buy either right now since we are at a super strong support level it wouldn't be that bad of an idea to get in at these levels however if you are more conservative the I recommend waiting to buy when the EMA's crossover.
When To Sell: I recommend selling at its previous high offering around a 25% ROI .
Fundamentals: Advanced Micro Devices, Inc. engages in the provision of semiconductor businesses. It operates through the following segments: Computing & Graphics, and Enterprise, Embedded and Semi-Custom. The Computing and Graphics segment includes desktop and notebook processors and chipsets, discrete and integrated graphics processing units, data center and professional GPUs and development services. AMD has a P/E of 38, a sales growth Q/Q of 52.50%, an earnings per share growth of 972% Q/Q, an ROI of 40%, and a short float of 7%.
Rating: 100/100 the technicals are very good and so are the fundamentals I think this is a very good trade idea with a decent ROI potential.
NOTE: NVDA is also oversold however the technical setup in my opinion looks better on AMD and the fundamentals as well are better than NVDA, and if any of you don't know NVDA is AMD's competitor. I will be watching this stock closely and might buy a few shares.
I hope you enjoyed this quick analysis and many more to come. If you enjoyed leave a like, follow, comment your thoughts and share this trade idea. Thanks.
The chip shortage still in progress and for long time because all chips making in China, Taiwan, Honk Kong, South Korea . The best case scenario US have to create good relationships with China which at current time aren't . Build chip factories in US it takes at least 1-2-3 years. Even if factories appears in US the Chinese chip technology will be fair ahead compare to US chips technology.
UnknownUnicorn11084119
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@Traderwell, Very interesting however this doesn't really matter since NVDA will also be dealing with these problems however this could be a potential negative catalyst.
Adam
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This is around the same analysis I had. I got calls that are doing well, so far. I think AMD will bounce in the 80s/90s for a while, but it could pop towards the end of the year. I have some longer calls and some shorter calls. No puts though. We'll see if that's a bad idea hah
AMD seems to be cycling in the $75 to 80 range currently. This seems like solid advice!
UnknownUnicorn11084119
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@discip1e, Yes it is currently in that area however I anticipate AMD going to 95$.
Akickmonkey
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So many bear pressure from the option market this week
UnknownUnicorn11084119
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@Akickmonkey, Yes theres quite a bit of bear pressure from the option market however it isn't just the options market, the entire tech-focused market has experienced bear pressure in the past month. Hopefully, we will see signs of a reversal so that we can capitalize on this pullback.