AMD Stock Looks Set To Move Higher.
The last week or so has been a roller coaster ride for investors in Sunnyvale, California-based Advanced Micro Devices Inc (NASDAQ:AMD). After the company posted a rather impressive set of earnings numbers last week, AMD stock scaled new highs to touch $15.65. However, the rally quickly fizzled out, and the correction that followed, dragged the stock down by over 15%. AMD shares closed yesterday's trading session at $13.24 a share. Now, though, the technical set up looks supportive of a rebound.
AMD stock fell below its 20 day Simple Moving Average a few days ago. However, It now looks set to take support from the 50 day SMA, which has just made a Golden Cross, rising above AMD's 100 day SMA. A Golden Cross occurs when a shorter duration moving average rises above a longer duration moving average, and is considered a bullish signal. In the absence of this event, the next level of support would come from AMD's 100 day SMA. However, the 50 day SMA will now lend support to AMD stock at $12.9. While that's still about 2.5% away, the Golden Cross suggests that the stock could be headed higher. The stock is also far from overbought territory, which means that there's sufficient room on the upside. There are also rumors that AMD may have another trick up its sleeve, with its 1920 Threadripper variant. While still unconfirmed, such a rumor could help buoy sentiment around the stock in the near term.
Tesla Stock Looks Set For A Rally.
By now, most of us know that Tesla Inc (NASDAQ:TSLA) reported earnings two days ago, and the numbers have impressed the street. The stock is up by over 6.5% since then, with all the gains coming in yesterday's session. Prior to the earnings release, Tesla stock found support at its 100 day SMA, having breached its 50 day and 20 day SMAs. However, yesterday's rally has singlehandedly taken the stock past these key moving averages, and the stock has taken support at its 50 day SMA. Further, Tesla's Moving Average Convergence Divergence has made a bullish crossover with the signal line, which is another bullish signal.
In the case of Tesla as well, the stock is still far from overbought territory, with its RSI at just under 56, well below the commonly used overbought threshold of 70. Tesla's stock price is currently touching the upper Bollinger Band, which indicates an overbought condition. However, since the RSI doesn't concur with this signal, it can be ignored for now.
Intel Stock Has Entered Overbought Territory.
Shares of Intel (NASDAQ:INTC) have entered overbought territory, going by two popular technical indicators. The Relative Strength Index (RSI) has a reading of 70.1, which is higher than the commonly used threshold of 70. A reading above 70 is interpreted as a sign of overbought conditions. However, as we highlighted above, traders often look for a confirmation of this signal from the Bollinger Bands. In this case, Intel's stock price is touching the upper Bollinger Band, which confirms that the stock has entered overbought territory.
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