Shares of Advanced Micro Devices are surging today. The stock is up over 10% on news the company is developing new gaming and PC chips. This powerful move on very heavy trade is driving AMD to its best close of 2019. Following today’s impressive news inspired ramp the stock is set up well for more upside.
Back April 3rd AMD finished the session with a 8.5% gain. Positive comments regarding sales in the second half, along with an upgrade, sparked this breakout move. Since then the stock has been consolidating in a narrow range while support underneath continued to firm up. Today’s rally has set the stock up for a run back up to the 2018 highs($34.15).
We consider AMD a low risk buy on weakness. The stock has a solid support zone in place between $29.15 to $28.50(multi week May highs). On the downside a close back below last week’s low($26.00) would be a clear warning sign. An important hurdle in the near term is the $30.00 area. Once past the April 3rd highs AMD as plent of room to run.
At time of publication we do not have a position in AMD.