Advanced Micro Devices Inc. (NASDAQ:AMD) has had a rough ride this year, down nearly 25% in the past 12 months and 10% just this past month. However, after weeks of pressure, the chart is flashing a setup that has traders on high alert.
Chart created using Benzinga Pro
The stock has pulled back to around $135-$137, a level that aligns with strong technical support and fills a recent breakout gap. The RSI (relative strength index) has cooled off to 62.74, momentum remains intact, and the dip is looking more like a launchpad than a breakdown.
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Chart Patterns Don't Lie—And AMD's Is Repeating History
AMD has quietly begun delivering its MI350 units, and while headlines may still be catching up, the chart tells a familiar story.
The same pattern seen during AMD's 2022–2023 comeback is playing out again, noted The Long Investor on X – pullbacks to key moving averages followed by powerful rebounds.
Beneath The Dip, Bullish Signals Are Stacking Up
Technically speaking, AMD is sitting above its 20-day, 50-day, and 200-day moving averages—typically a bullish setup. The MACD (moving average convergence/divergence) indicator is in bullish territory, and every dip this year has been met with eager buyers. If history is any guide, this one may be too.
Some traders are eyeing the $136 range as an attractive entry point, with upside targets around $170 and risk management set below $125. Long-term investors? They're simply noting that every time AMD drops below its 200-week average, it ultimately rewards the patient.
In a chip market dominated by Nvidia Corp (NASDAQ:NVDA) headlines, AMD might just be setting up for its own moment. Missed the first wave? This second pullback could be your shot.
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