Advanced Micro Devices has been consolidating after a big surge in July and August. Now the chip stock may be lining up for another move.
The first chart pattern is the descending trend line that began on January 11. It was resistance a week later, but yesterday AMD closed above it for the first time.
Next, AMD has spent the last two weeks building support around $87.50. This approximate area gained importance around August 6 when the previous rally faded. It was resistance again in October and November.
Third, MACD is starting to turn positive.
Finally, prices are trying to fight back above the 50-day simple moving average (SMA), which could also suggest the uptrend is resuming.
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