Can AMD Bulls Defend $235 to Avoid Deeper Correction?
$237.70 (−7.27%): 20-EMA breach triggers correction watch—buyers eye 235/245 defense zone (range 232–253)
Market Recap (today):
Advanced Micro Devices closed at $237.70, down −7.27%, trading $235.75–$253.51 on 65.7M shares versus 58.7M average (~1.12×). The stock now trades roughly 11% below its 52-week high ($267.08).
The pullback followed a sharp post-AI-rally stretch, with (1) profit-taking pressure, (2) rotation out of semiconductors, and (3) technical overextension near the prior breakout zone all contributing to the reversal.
Technical & Outlook:
The MACD (12,26,9) turned negative (−2.84) as the MACD line dropped below signal (15.55 < 18.39), producing a widening bearish histogram—early correction momentum confirmed.
RSI(14) ≈ 53, moderating from overbought, shows loss of upside energy but not yet oversold. Price closed just below 20-EMA ($238.93) yet stays above 50-EMA ($210.67), implying medium-term uptrend intact though short-term control shifts to sellers.
SAR trend suggests a momentum pause; sustained closes under $238 risk triggering follow-through to $232–$225.
Key levels: Support $235 / $232 / $225; Resistance $245 / $253 / $267. Valuation: TTM P/E ≈ 124× versus S&P 500 ≈ 27×, above historical norms—execution premium remains priced in.
1-week bias: Sideways-to-down unless buyers reclaim $245–$247. Target Range: Short-term rebound toward $245–$253; breakout above $253 reopens $260–$267. Breakdown below $232 exposes $225–$220 retest.
Risk & Disclaimer: Elevated multiple plus macro/AI sentiment shifts can exaggerate volatility; maintain stops and risk discipline. This is technical commentary only, not investment advice. Data verified via Yahoo Finance & TradingView (Nov 6 2025).
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