AMD traders were fighting very hard for that 50 day moving but Doji pattern signals uncertainty.
The bulls and bears were both fighting over the stock yesterday and there was no clear winner. This potentially can signal a reversal of the current trend in the near term. I would have personally loved it if we closed the day higher than $83.83; since that was the most recent high we had in our downtrend. That would have had us officially setting Higher Highs which is incredibly bullish.
The candlestick patterns with rising volume signals that we might take a break from the most recent move up. So we might see a reversion back down to the 50 day moving average today. Finding some support there would be a very good signal. Or perhaps even back down to the $81.30 level which would be the top end of the down trend.
I’m expecting it just to be a quick breather before moving up to the next level gearing up for earnings run up. Stocks don’t only go up, so taking a break here would be very very healthy for us. Consolidation is expected here. Especially if we find some good price support. We’ve already had a really strong move upwards already from the lows. Taking a break, consolidating before run up to earnings could put us in a great place for the coming weeks.
TSMC just had a blowout quarter
We all knew it was going to be a blowout so nothing new there. Though i am still concerned about geo-political events that could happen in the near future. That might be the thing that is going to screw up the next couple months for AMD.
If we see tensions in Taiwan rise with China because of some muscle flexing, then all bets are off.
Right now the market is sort of ignoring the buildup of Chinese naval vessels as just another “annual muscle flex.” But when you least expect it, the worst can happen. Always good to know what the doomsday scenario looks like so you don’t panic on dips.
AMD is eating into Intel’s market share in 2021
AMD’s CPU market share increased by 0.46 percentage points in March, and the company finished the month with 28.97% of the market under its control. Intel controlled the rest of the market with a share of just over 71%.
AMD is now looking to turn up the heat in the higher end of the PC processor market. Supply chain sources indicate that AMD could increase production of Ryzen 5000 parts by 20% in the second quarter of 2021 as compared to the first quarter. This could help AMD corner more market share, as its high-end processors are reportedly better than Intel’s competing offerings as per third-party benchmarks.
That’s not surprising, as AMD took the gaming CPU crown from Intel after the launch of the Ryzen 5000 series processors last year because of its technological advantage. More importantly, AMD is unlikely to lose its advantage over Intel anytime soon.
Dont be surprised
So, don’t be surprised to see AMD achieve the ambitious guidance that it has set for itself this year and become a top tech stock once again. It had an performance on the market over the past few months. I personally see AMD hitting the $100 mark in a very near future. That is if the supply-chain issues ever fade away. And if the geopolitical situation remain stable.
Here is another stock that we like :
Source of analysis: Reddit user jwredskins55.