Advanced Micro Devices Shows Mixed Signals Heading Into Highly Anticipated AI Event: The Bull, Bear Case
Advanced Micro Devices, Inc AMD closed 3.42% higher Monday ahead of its highly anticipated "AMD Data Center and AI Technology Premiere" event, scheduled to take place Tuesday at 1:00 p.m. ET.
The stock has seen a meteoric rise, doubling in value this year and surging more than 60% since May 3, driven by the rise of stocks that leverage the capabilities of Artificial Intelligence.
AMD is expected to showcase its aggressive growth strategy for its data center and AI arms when Chair and CEO, Dr. Lisa Su takes the stage along with other company executives at the event. Read more here...
Prior to or after the event, the stock may break up through resistance near the $130 mark, which AMD rejected on May 30 and Monday.
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What are the predictions for AMD's stock price after the release of the new chip?
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The AMD Chart: AMD started trading in a fairly consistent uptrend on May 4, making a series of higher highs and higher lows. The most recent high was formed at $130.79 on May 30 and the most recent low was printed at the $117.05 mark on June 8.
On Monday, AMD spiked up toward the $130 level but rejected the area and printed a doji candlestick. The candlestick suggests the local top may be in, and the stock could trade lower on Tuesday, however, the investor event could cause AMD to negate the candlestick and the stock could trade higher.
If AMD's presentation is a "sell-the-news" event, the double-top pattern the stock formed near the $130 mark on May 30 and Monday is likely to play out. If that happens, a longer-term retracement could be in the cards.
AMD has resistance above at $130.60 and $138.52 and support below at $122.49 and $118.13.
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