AMD 200DMA Breakdown

By Johns Wu on Jun 06, 2006

AMD, Advanced Micro Devices Inc, is showing weakness today as it easily brokedown at the 200DMA.

It has also broken down at a consolidatory support. It could make a low risk short entry right here. "Support becomes resistance."

This entry was posted on Tuesday, June 6th, 2006 at 1:01 am and is filed under Annotated Analysis. You can skip to the end and leave a response. Pinging is currently not allowed.

4 Responses to “AMD 200DMA Breakdown”

By Anonymous on June 6th, 2006 at 5:49 pm

While it may look like a short from a pure technical standpoint, I wouldn’t say it is a ‘low risk’ short entry.

Keep in mind this is the company that has been causing INTC grief for the past 3 years. INTC went down from $34 to $17.80 while AMD went up from 7.5 to 42, back to 30 in the last 3 years.

Also, if you look at the longer-term chart for AMD, this looks more like a consolidation rather than a selloff.

By Danny on June 6th, 2006 at 8:12 pm

the market may be telling us that AMD won’t get the contract for dell’s notebook chips.

By Dave on June 6th, 2006 at 11:36 pm

best short would prob be on the pull back to the broken support level &/or trendline

Danny: The market may also be telling us that AMD’s growth is slowing. (along the lines of what you said)

By Anonymous on June 7th, 2006 at 7:58 am

Watch the action on INTC today. Is is getting hammered, so far -2.2%.

Also, today DELL announced a deal with GOOG to supply servers for the search appliance. GOOG is known to prefer AMD chips in their data center due to low power dissipation of Opterons.

I think AMD is a HOLD, not a SELL, yet.

Name

Website:

Comments: