Advanced Micro Devices stock has some support in place
Advanced Micro Devices Inc (NASDAQ:AMD) stock has been feeling the heat alongside the rest of the semiconductor sector amid the recent tech selloff. On hopes of an interest rate cut in September, investors have been rotating away from tech in favor of cyclical stocks.
Furthermore, chip stocks slumped last week after reports that the Biden administration will tighten trade restrictions due to China concerns. And just yesterday, earnings from Alphabet (GOOGL) and Tesla (TSLA) sent the tech-heavy Nasdaq spiraling.
At last glance, AMD was down 2.4% at $141.19, on track for its 10th daily loss in the last 11 sessions. However, this negative price action also has the equity within one standard deviation of its 260-day moving average, after trading north of this trendline 80% of the time in the past two months, and in eight of the past 10 trading days.
Advanced Micro Devices stock has flashed three similar signals in the past three years, after which it was higher one month later each time, averaging a massive 27.8% gain.
With this support in place, now looks like a good time to buy in on the dip. It’s also worth noting that the security’s 14-day relative strength index (RSI) of 31.9 sits on the cusp of “oversold” territory.
