Trading Idea - Is Advanced Micro Devices close to Resistance?

Published on Wednesday, 01 February 2012 09:32 Written by Christian Paolinetti

New York, February 1st (TradersHuddle.com) - Shares of Advanced Micro Devices, Inc. (NYSE:AMD) are trading very close to calculated resistance at $6.95 with the current price action closing at just $6.71 placing the stock near levels that make it difficult to buy.

Advanced Micro Devices, Inc. (NYSE:AMD) manufactures semiconductor products. The Company manufactures products that include microprocessors, embedded microprocessors, chipsets, graphics, video and multimedia products. Advanced Micro Devices, the second largest chipmaker in the world, offers its products on a global basis.

Advanced Micro Devices' current stock range is defined by current calculated support defined at $4.82 and by the resistance level at $6.95, the stock is clearly over-extended from support, making it difficult to establishing new long positions at this level.

Traders don't have a clear entry point for Advanced Micro Devices, as the stock is well above support, however, as the stock pulls back towards $4.82 it will definitely provide a reference point to establish a trade. On the other hand if the stock decides to break above resistance level at $6.95 then traders will get an opportunity to enter Advanced Micro Devices stock by establishing a position as the stock moves to a higher range.