Chart of the Day – $AMD and a Gaming Revolution

by Enis June 11, 2013 3:17 pm • Commentary

AMD stock has been on a tear in the past 2 months, almost doubling since early April on big volume buying.  I was on Talking Numbers on Yahoo Finance with Dan Nile, an experienced technology analyst, in which he discussed the bull case for AMD.  Here’s the full video:

Certainly an interesting take, as he highlighted the potential from the video game console business as a possible driver of earnings 1 or 2 years down the line.  I’m no expert on AMD, and have never traded the stock, but it was also the first time I had heard that line of reasoning on the name.

From a technical perspective, the stock looks to have run into long-term resistance after this big run in the past 2 months.  The 4 year daily chart shows the crucial area around 4.50 that was prior support that is likely to act as resistance:

4 year daily chart of AMD, Courtesy of Bloomberg
4 year daily chart of AMD, Courtesy of Bloomberg

An interesting discussion regardless, on a very beaten down name.  I don’t plan to do anything in this name, but thought it was worth sharing for those interested.