Advanced Micro Devices, Inc (NASDAQ: AMD) Shares Drop 8% With Sharp Increase In Traded Volume

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AMD (AMD:NASDAQ) shares have dropped by more than than viii% during the last trading session and have broken some of the bullish momentum resulting in immediate correction towards the $v.01 price level. At the height of $5.48, investors started selling shares and booking profits. The apparent cause behind the drop in the share price appears to exist profit taking by investors driven by selling pressure at the $five.48 level.

Selling pressure and profit taking drive downwards (AMD: NASDAQ) share price

AMD shares touched a peak of $5.48 per share, a level it has not touched since mid 2022. This constitutes an all-fourth dimension peak in almost 5 years. The bullish momentum that had been carrying AMD forrard appears to have collapsed back downwardly to firsthand support levels which can be found at the $5 mark. The stock price per share started facing resistance around this mark and bottomed out at $5.01 by the time the endmost bell rang.

Shares Traded: 47,852,032
Concluding Traded Price: $five.02
Total % Change: -seven.8899%

The amount of shares traded is also near twice the boilerplate daily volume (ADV), clocking in at 47.8 Million shares irresolute hands – which constitutes more than 7% of the bladder. This is one of the reasons we believe that the initial selling pressure at the tiptop started a scramble to book profits in case of a crash to primordial support levels (which we believe to exist around the $three.68 mark). It is too likely that the effect was farther compounded by stop-loss orders, set up by vigilant investors unwilling to lose out on their paper gains, getting triggered during the drib in share price of Advanced Micro Devices (AMD:NASDAQ). NASDAQ AMD June 23

Share price at the time of writing.

Also keeping in mind that no material info has been disseminated to the public recently (either past leaks or by the company) which farther adds acceptance to the statement that this is a textbook example of profit-taking. The big corporeality of book traded and the characteristic steep pass up are all indicators of herding beliefs and the vicious bicycle of selling pressure.

Support guidance (AMD: NASDAQ)

The market is currently in pre-open condition and from the market place depth information it would appear that support has kicked in with a slight bias to the bullish side of the order book and upward momentum probable to resume – albeit at a muted stride. Share price has been hovering around the $5.14 mark. In the case of farther investor panic and profit taking, immediate support levels beneath the $v mark volition likely be establish at the ~$4.76 level subsequently which we expect a meaning cluster of resistance to kick in around the $4.42 marking.

Immediate Back up: $4.76
Primary Support: $iv.42

Advanced Micro Devices, Inc (AMD:NASDAQ) recently unveiled their RX 480, RX 470 and RX 460 graphics cards all of which nosotros know are going to offer an unparalleled amount of value to customers at the sub $200 price point. The company is poised to capture a completely unexplored segment of the market place not to mention will be unveiling its Zen architecture this year. All in all things, have not looked better for AMD in a long time, and the share cost reflects this.