AMD is having a flat 52 weeks with their shares trading around $3.50 – $4.00 most of the time. That is about to change. If we look at AMD’s chart, we can see it making a bullish move with it’s 30 day moving average crossing it’s 200 day moving average.
When a stocks 50/30 day moving average crosses below it’s 200 day moving average, that is called a death cross. You would want to stay away from those stocks because most likely, they are going to be in a very aggressive down trend. But what about when a stocks 30/50 day crosses back above it’s 200 day moving average? I call this the Life Cross.
Below is a screen shot of AMD’s chart. We can see that around February 8th, the stock bottomed out and made a aggressive move up to the $3.60 area. It stayed there for a while establishing some support, then bounced off of it’s 200 day moving average up to the $4.00 territory. You can see that around March 20, it’s 30 day moving average starts to cross back above it’s 200 day.
As of today, AMD is at $3.91 sitting close to it’s 20 day moving average. This stock has a chance to get into the $3.80’s but it won’t stay there. Look for it to bounce past $4.00 and test it’s $4.20 price point.
It’s worth noting that AMD reports it’s earnings toward the end of April, so if you buy this stock and it’s around $4.30 close to earnings, you might want to re-evaluate if you want to keep or sell the stock before earnings depending on how confident you feel about AMD’s earnings results. As of right now, AMD is a buy at this price.
