AMD: Tech Stock With A Bullish Forecast In 2019

AMD shares rose 17 pct on Wednesday, driven by improved guidance from the company. With this, we expect a bullish forecast for tech stock AMD in 2019. These are the 4 important price points to watch for AMD in 2019. If and when AMD accomplishes a bullish breakout we consider to add it to our top 3 tech stocks for 2019.

There was plenty of coverage on AMD today, and a bullish forecast for 2019 based on the improved outlook of the company is a logical conclusion.

According to Marketwatch in this piece, AMD’s shares surged higher as investors bought into the company’s full-year 2019 outlook for high single-digit revenue growth, even with a forecast revenue drop of about 24% in the first quarter. Investors are clearly banking on the company’s next generation of chips for PCs and data centers/servers, especially its higher-margin EPYC chips for servers, coming out in the second half of 2019.

CNBC added to this that AMD surged on relief its earnings were not worse especially after revenue warnings from NVIDIA and lowered outlook from Intel earlier this week. AMD reported fourth-quarter revenue and a first-quarter outlook slightly below expectations on Tuesday, due to excess inventories of graphics chips. The company did forecast high single-digit revenue growth for 2019 despite an anticipated drop in the first quarter.

AMD: Tech Stock With A Bullish Forecast In 2019

Chart-wise AMD made a triple bottom during the aggressive selloff in Q4 of 2018.

It is now stuck in the $16 to $23 area.

A break above $23.50 would send this stock to previous highs around $33-$34. Smart investors watch the breakout point $23.50 very closely. This is the condition to confirm the bullish forecast for 2019.

As per Tsaklanos his 1/99 Investing Principles it is just 1% of price points that matter on any chart. For AMD in 2019 we see the following critical price points:

  • P1 Bullish above $23.50
  • P2 Bearish below $15.50
  • P3 Major top at $34
  • P4 Major bottom at $8
1 2
View single page >> |

Disclaimer: makes every effort to ensure that the information provided is complete, correct, accurate and ...

How did you like this article? Let us know so we can better customize your reading experience. Users' ratings are only visible to themselves.


Leave a comment to automatically be entered into our contest to win a free Echo Show.