AMD stock extends losses as selling pressure intensifies and bearish momentum dominates

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AMD drops 3.32% to $587.84 today

Highlights

AMD stock closed at $587.84, falling 3.32% on the day and ending near its session low with moderate volatility.
Bearish momentum dominates as the stock trades below short- and medium-term moving averages, with all key indicators in oversold territory and sellers controlling direction.
Near-term, AMD is expected to remain in a $564.52 to $611.16 range with a 78% likelihood of further downside unless it reclaims resistance above $631.88.

Bearish momentum intensifies amid resistance and oversold indicators

On the technical front, AMD is currently trading below its MA-20 ($626.44) and MA-50 ($631.73) on the hourly chart, while it stays above the MA-200 ($385.3) on the daily chart. The Ichimoku Kijun level at $631.88 is acting as immediate resistance. Momentum indicators are bearish: MACD, ADX, and Awesome Oscillator all indicate selling pressure. RSI is at 31.27, with Stoch RSI confirming oversold conditions and CCI signaling a sell. Negative Bull/Bear Power suggests sellers remain in control, and no bullish divergences are visible.

Downside risk dominates as breakout probability remains limited

In the short term, AMD is projected to move within a $564.52 to $611.16 volatility band over the next few days. The probability of an upward breakout is low at 22%, with a stronger likelihood (78%) of downward continuation. If AMD remains in this range, price action should stabilize sideways. A bullish reversal scenario would require a move above the $631.88 resistance, while a drop below $564.52 could accelerate the decline.

Viktoras Karapetjanc, expert at Traders Union, notes that AMD is facing persistent selling pressure with indicators confirming a bearish short-term outlook. He sees price action constrained below critical resistance, while technical momentum favors the bears. The analyst remains confident that the medium-term trend is intact above longer averages, but expects volatility until a breakout level is reached. "Despite strong fundamentals, I would wait for confirmation above $631.88 before turning more positive on AMD in the near term."

Previously it was reported that significant investments and facility expansions in Malaysia's semiconductor sector are underway, with companies like AMD benefitting from advanced manufacturing capabilities. With AMD's shares now exhibiting strong downward momentum and limited prospects for a near-term reversal, traders should closely monitor the $564.52 level as a potential trigger for further downside risk.

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

The information is based on forecasts and does not constitute investment advice or a guarantee of future results. Market conditions may change. See our Disclaimer and Editorial Integrity for details.