AMD shares retreat, holding firm above MA-50 support at $255.73: weekly forecast

Traders Union
All News
Financial News
AMD falls 2.97% over the week

Highlights

AMD maintains a strong bullish structure, trading significantly above major moving averages, with buyers firmly in control.
Despite persistent upside momentum, multiple overbought signals and a sharp weekly retracement indicate risk of a short-term pullback.
AMD is expected to trade in a $473–$572 range this week, with a 75% probability bias toward consolidation or further upside.

Earnings beat and data centre growth lift sentiment this week

AMD posted its Q1 2026 financial results on May 5, 2026, with adjusted earnings per share of $1.37, beating expectations. Quarterly revenue rose 37.8% year-over-year to $10.25 billion, led by a 57% increase in data centre revenue to $5.80 billion. Management highlighted increased visibility into growth thanks to strong customer commitments for the MI450 series.

Bullish momentum persists as overbought risks emerge this week

Weekly technical indicators remain positive, with MACD and ADX confirming the ongoing bullish trend, although several overbought signals are present as shown by elevated RSI, CCI, and Bull/Bear Power values; the Stochastic RSI points to the possibility of a short-lived pullback. AMD holds firm support at the MA-50 level. Key weekly support lies at $473, while resistance is seen near $572.

Consolidation favored as breakout risk builds for the coming week

Over the next five trading days, AMD is likely to consolidate between $473 and $572, reflecting its recent volatility and strong technical position above long-term moving averages. There is a 75% probability of a higher move and a 25% risk of further decline based on weekly indicators. A clear break above $572 would signal renewed bullish momentum, while a move below $473 could trigger a more significant correction.

Jainam Mehta, market strategist, notes that AMD maintained its bullish structure this week by staying well above its key weekly moving averages, despite closing at the bottom of its trading range after a 2.97% decline. He observes that upbeat financials and robust data centre revenues underpin the broader macro story, while technical momentum remains positive even as overbought signals warn of volatility ahead. Mehta sees the $473–$572 range as the immediate battleground, with directional bias skewed toward consolidation or a potential breakout. "If AMD decisively clears $572 this week, I see room for renewed upside — but until then, patience within the range is warranted."

Earlier, analysts noted that AMD and other AI-linked semiconductor stocks were benefiting from accelerating demand and positive investor sentiment. The latest earnings and ongoing technical strength now reinforce AMD's leadership within the sector, with traders advised to monitor the $572 resistance for signs of breakout-driven momentum.

Source of Data: AMD Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.