If shares of Advanced Micro Devices, Inc. (NASDAQ:AMD) continue to drop, there’s a chance they find support around the $73 level. This could put an end to the selloff.
Stocks move lower because there aren’t enough buyers to take in all the shares that are for sale. The buyers are overpowered by the sellers, but that dynamic changes at support levels.
At these levels, there is a large amount of demand or buyers. There is enough to absorb all the sellers have to offer. They don’t have to force the price lower anymore.
As you can see on the following chart, over the past year AMD has found support around $73 four times. And each time a rally or move higher followed. It could happen again.
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