After a steep and rapid downtrend, shares of Advanced Micro Devices, Inc. (NYSE:AMD) have reached a critical support level. If it breaks, the shares could continue to trend lower.
But if the support holds, meaning that the stock doesn’t trade below it, there could be a rebound.
Support is a large concentration of buy orders that have been place around the same price levels. As you can see on the following chart, there has been support for AMD around $73.50.
Sometimes when a stock drops to a support level, it will stop going lower and even rebound. This happened with AMD in late 2020 and early 2021. AMD shareholders are hoping that it happens again.
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