In a Actual Cash column Wednesday, Jim Cramer advisable buyers focus on particular person semiconductor stocks, and steer clear of ETF baskets. Some semiconductor names he favored included Qualcomm (QCOM) and Superior Micro Gadgets (AMD) .
I have not checked out AMD in a while so let’s test it out now. On Oct. 28 I used to be too bearish and advisable, “Regardless of the elemental story, the charts of AMD counsel a good quantity of danger forward. Take income on longs and keep away from the lengthy aspect for now.”
The shares dipped somewhat additional into early November however by no means broke the September lows to start out a downtrend (see the chart beneath). Costs zigzagged as much as the October excessive and broke out larger earlier this month.
Within the every day bar chart of AMD, beneath, we are able to see that the shares have even damaged out over the September highs. AMD is buying and selling above the cresting 50-day shifting common line and properly above the rising 200-day shifting common line. The buying and selling quantity has been regular and the On-Steadiness-Quantity (OBV) line has inched upward the previous two months however it has but to make a brand new all-time excessive to verify the price breakout.
The Shifting Common Convergence Divergence (MACD) oscillator is pointed up and above the zero line however the two common traces are on prime of one another.
Within the weekly bar chart of AMD, beneath, we are able to see a powerful three-year advance. Each pullback and dip to the rising 40-week shifting common line has been a shopping for alternative. Weekly buying and selling quantity has diminished lately and the OBV line was robust for a very long time earlier than turning sideways in current weeks.
The MACD oscillator has simply crossed to the upside for a brand new outright purchase sign.
On this Level and Determine chart of AMD, beneath, we used every day price information. Right here we are able to see a current upside breakout and a possible $114 price goal.
On this second Level and Determine chart of AMD, beneath, we used weekly price information and right here a $125 price goal is displayed.
Backside-line technique: AMD is pointed up however I want to attempt to purchase it nearer to $90 if doable after which danger beneath $85. Our targets could be the $114 to $125 space.
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