Shares of Advanced Micro Devices (AMD) have surged higher in the last month, nearing the all-time high from February 2020. However, there is a major technical stock chart sell signal on the stock. The technical term is a double top and will represent major resistance on Advanced Micro Devices. As a swing trader, I am looking to short it at $59-$60. Considering the last earnings report was subpar for the stock, and that was pre-Covid-19, there should be a significant downside in the coming weeks. The one saving grace that investors are clinging to is that with everyone being home, people are buying computers. Considering 22 million people have lost jobs in the last month, I think that may be somewhat optimistic.
Based on pure technicals, the chart sell signal tells us Advanced Micro Devices is likely to drop back to the $51.50 level. This offers an over 10% swing trade profit trade in maybe a couple of weeks of hold time. This is a no brainer for hardcore chart technicians.
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