Trading Idea: - Is Advanced Micro Devices close to Resistance?

Published on Monday, 11 June 2012 08:44 Written by TradersHuddle Wire

New York, June 11th (TradersHuddle.com) - Shares of Advanced Micro Devices, Inc. (NYSE:AMD) are trading very close to calculated resistance at $6.14. The stock ended the trading session at just $5.91, which is near levels that make it difficult to buy or start a position.

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' stock range is defined by its calculated support defined at $5.52 and by the resistance level at $6.14; the stock is clearly over-extended from support, making it harder for participants to establish fresh longs.

Traders don't have a clear entry point for Advanced Micro Devices. However, as the stock pulls back towards $5.52 it will definitely provide a reference point to establish a trade. On the other hand, if the stock breaks above its resistance level at $6.14 then traders will get an opportunity to enter the stock as it moves to a higher range.