The post What next for AMD after forming first death cross in over 2 years appeared on BitcoinEthereumNews.com.

The share price of Advanced Micro Devices (NASDAQ: AMD) is experiencing bearish sentiment in the short term, with technical indicators pointing to possible further losses ahead. Interestingly, AMD closed the August 14 trading session with a modest drop of almost 0.3%, trading at $140. The equity has traded in the red in recent months, plunging over 20% in the last six months. However, the stock attempted to recover on the weekly chart, gaining over 6%. AMD one-day stock price chart. Source: Google Finance Implication of AMD’s death cross As the equity attempts to find stability, AMD stock has formed a death cross for the first time since March 2022, according to data shared by Barchart in an X post on August 15. This technical pattern, where the 50-day moving average (MA) crosses below the 200-day MA, is often seen as a bearish signal by market analysts and traders. The last time AMD shares experienced this pattern, its shares plummeted by more than 50% over the following seven months. AMD stock price analysis chart. Source: Barchart Notably, the pattern is significant because it reflects a shift in momentum where the short-term trend has weakened to the point that it has fallen below the long-term trend. This shift can indicate that bearish sentiment is overtaking bullish optimism, leading to further selling pressure. Given that the tech company lost significantly during the last death cross, this historical context is crucial as investors and analysts seek to gauge whether current market conditions might lead to a similar outcome. Investors will examine key fundamentals that could counteract the possible downturn the death cross formation initiated. For instance, in addition to the company’s bet on artificial intelligence (AI), new data indicates that AMD is gaining significant market share in the CPU market, dominated by players like…

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Filed under: News - @ August 15, 2024 9:25 am