Playing Advanced Micro Devices

Published on Thursday, 29 July 2010 19:32 Written by Christian Paolinetti

New York, July 29th (TradersHuddle.com) - Shares of Advanced Micro Devices, Inc. (NYSE:AMD) closed the trading session at $7.78 near its 50 day and 200 day moving averages currently set at $7.98 and $8.12 respectively. Advanced Micro Devices' price action is below these important levels, which makes the stock difficult to buy, as there will certainly be 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.

Latest price action range, defined by a peaks and troughs algorithm placed calculated support at $7.11 and calculated resistance at $8.25. These levels should be watched by traders, as they provide insight into the latest price dynamics in Advanced Micro Devices shares.

Traders should evaluate their options if they 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. Other levels that traders will closely evaluate are the ones defined by the peak and troughs algorithm that provides great price level reference points.