Advanced Micro Devices, Inc. (AMD) Stock Will Hit New Highs in Weeks

 
 

I’ve been keeping a close eye on Advanced Micro Devices, Inc. (NASDAQ:AMD) over the last couple of months, and that has a lot to do with one of my primary strategies.

Source: AMD

Those of you who have followed my advice in the past know that I like to use a top-down approach to finding investment opportunities in the market. This allows me to focus on broader industry trends, then dig down deeper to identify specific groups and stocks that are outperforming their peers in the current environment. This strategy treated my subscribers and me well over the years, and it’s one reason I’m keeping watch over AMD stock.

We talked about this stock back in February. Advanced Micro Devices was up more than 600% over the past year and had just powered through $15 for the first time since 2007. I wasn’t a buyer there — in fact, I had said to expect a near-term top.

But I did note that it could provide a technical swing-trade opportunity if it pulled back, bounced off $12.60 and traded in the $13 area.

Given the recent chart action, I believe we’re seeing that now.

AMD Stock Chart

AMD hit a multiyear high of $15.55 on Feb. 28 before dipping more than 20% to test support at its 50-day moving average (the blue line). Support held, and while the shares fell to a low of $12.38 on March 6, they were able to rebound to close the day at $13.04.

That was the technical signal I was waiting for, and with Advanced Micro Devices only slightly higher today, I now view it as a buy given the potential for the market, sector and stock to hit new yearly highs in the coming weeks.

The tech industry is outperforming right now, and I remain bullish on it looking out into the second half of 2017. One of my favorite groups within the sector is semiconductors, and that’s what brings me to individual stocks like AMD, which continues…

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