Advanced Micro Devices Inc (NASDAQ:AMD) is trading at $81.57. This follows two weeks of bear controls in which the stock lost 10.80% and 13.97% respectively. We think that the stock is now near the bottom and is a buy.
Advanced Micro Devices is a stock that many investors desire. For some investors, the stock has been out of reach. The bear market is a buyers’ market and it is making the stock available at discounted prices. Investors target catching the stock at or near the bottom.
Analysis shows that Advanced Micro Devices has support at $74. Since November 2021, the stock has lost more than half its value. This analysis considers that Advanced Micro Devices is at or near the bottom. It is therefore unlikely to decline significantly from the current level.
Whales have already taken notice of the price. A sweeping call at $80 was among notable whaling activities this week. It confirms that the stock has support at the current level and that the market is optimistic. The factors make the company a buy at the current price.
AMD is at $81 as RSI tends towards oversold
Source – TradingView
Technical analysis shows that Advanced Micro Devices is trading close to the support level of $74. The stock is unlikely to drop below $74 even in the current bearish market. The price chart shows that the stock has been consolidating above $80. If the pattern is to continue, then the stock would remain sustainably above the support level.
Our analysis indicates that Advanced Micro Devices is a buy at $81. The stock is near the bottom with solid support at $74. Whaling activities have call options at $80, and the price target is between $135 and $155.
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