Advanced Micro Devices Is Approaching Important Moving Averages

Published on Thursday, 05 July 2012 08:56 Written by TradersHuddle Wire

New York, July 5th (TradersHuddle.com) - Advanced Micro Devices, Inc. (NYSE:AMD) closed the the trading session at $6.03, near its 50 day and 200 day moving averages currently set at $6.30 and $6.32 respectively. Advanced Micro Devices' price action places the stock below these important levels, which makes it difficult to be bought, as it will certainly face resistance as it approaches these important moving averages.

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.

The latest price action range, defined by a peaks and troughs algorithm, placed calculated support at $5.32 and resistance at $6.09. Traders should monitor these levels, as they provide insight into the latest price dynamics in Advanced Micro Devices.

If traders want to establish a position on Advanced Micro Devices, given the heavy resistance expected near the 50 and 200 day moving averages, a trade might be evident as the stock manages to break these moving averages. However, until the break materializes buying the stock is nothing different than flipping a coin.