Looking at any daily chart for AMD you will see that there is definitely a long term bullish picture. However, for about three separate instances in the last two quarters, AMD has traded off a roughly $10 support level and moved significantly higher. On the upside AMD tried to break above the $15 per share level but experience very strong resistance. The $15 is an approximate 50% premium above the $10 resistance level.
By averaging about $10 support level and $15 resistance level is pointing to a breakout level of about $12.50. Any fall below this point is a key buy signal that investors should move on. You will sees the stock attempting to stabilize at $12.50.
for the longer term or even near short term AMD's stock appears to have more movement to the upside. Any fall below the 12.50 support level is a buy signal. For safety any fall below 11.90 I would signal a definite buy. Any fall below $10.20 approaching the $10 resistance level would signal a very Strong Buy.
At $10.20 or below, I would definitely see 50% upside in the near term. This would not be too far fetched considering that AMD would be reporting in about a month from now and should meet or slightly exceed wall street expectations.
I expect AMD to be at $16.00 by January 2018 which is would be more than 25% upside from today’s month-end and quarter close.
I good time to get back into AMD would be in the final session today or to try and gain substantially would be to wait for another 5 to 10% drop to materialize in a week or so.
Disclosure: I/we have no positions in any stocks mentioned, but may initiate a long position in AMD over the next 72 hours.