Advanced Micro Devices Inc. (NASDAQ:AMD) shares were trading higher Wednesday after the company announced the launch of the Radeon RX 6600 graphics card. This graphics card leverages breakthrough AMD RDNA 2 architecture.
AMD was up 3.71% at $108.94 in Wednesday afternoon trading.
AMD Daily Chart Analysis
- Shares look to have broken out of what technical traders call a pennant pattern. If the stock can hold above the breakout level, the stock could see a further upward push.
- The stock was pinched between narrowing highs and lows before the pattern resistance was broken. This signals a breakout, and an above-average volume day could send the stock higher.
- The stock trades above both the 50-day moving average (green) and the 200-day moving average (blue), indicating the stock is seeing bullish sentiment.
- Each of these moving averages may hold as a possible area of support in the future.
- The Relative Strength Index (RSI) has been pushing higher the last few days and sits at 59. This shows there has been more buying than selling pressure in the stock.
What’s Next For AMD?
Bullish traders would like to see the stock continue to break out and push higher for a time. It’s likely the stock will cool off after a breakout, and bulls would like to see a period of consolidation for a possible further upward push.
Bearish traders are looking for the stock to fall back into the pennant pattern and then fall below pattern support. Bears would also like to see the stock fall below the moving averages for a possible change in sentiment.