💡Trade Idea – Thur. 7/3/25 Deep Dive: AMD Advanced Micro Devices Inc.

Breaking Down the Chart and Mapping Out the Trades

Hey traders and investors,

Today I’m diving into Advanced Micro Devices ($AMD)—a name that’s been riding the AI boom, breaking out hard earlier this quarter, and now pulling back just enough to make things interesting again.

Let’s break it all down. I’ll walk through the recent headlines, dig into the chart, and offer up trade setups for short-term swing traders, long-term investors, and options traders. No fluff—just a clean read of the technicals and how I’d look to play it.

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📰 Recent News

AMD made headlines again this week after it was announced that its MI300X AI chips have begun shipping in higher volumes to hyperscalers and enterprise customers. Microsoft confirmed it’s expanding its Azure integration, and early benchmarks show strong performance versus Nvidia’s Hopper GPUs in specific workloads.

The market likes the growth story in AI, but the stock has been consolidating a bit after a big run. The question now is: Is this just a breather or the beginning of something deeper? Let’s pull up the chart.

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🧭 Technical Breakdown

Let’s start with the structure.

• Price Action: AMD has been trending higher since early May, carving out higher highs and higher lows. It’s cooled off a bit over the last few sessions, pulling back to around the $137 range. Notably, it’s still trading above its 21-day EMA and comfortably above the 50-day SMA, which is a healthy sign for a stock that just rallied nearly 50 points.

• Support Zones:

  • First support is sitting right around $131.48 – that lines up with a previous breakout zone and the rising 21-day EMA.

  • If that breaks, next level is $125.48, just above the 50-day moving average.

• Resistance Levels:

  • Overhead resistance sits around $146.48, which was the recent high.

  • Above that, the bigger breakout target would be the 52-week high near $187.28—a big leap, but it’s still on the map.

Now let’s zoom in on the indicators:

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🧪 Indicator Talk

• Relative Strength Index (RSI): Currently sitting at 65. That’s not overbought yet—but definitely strong. RSI in the mid-60s tells me buyers are still in control, and there's room for more upside before we have to worry about conditions getting stretched.

• MACD: Still bullish, with the MACD line above the signal, though it’s starting to level out. That lines up with a market that’s consolidating after a big run. If the MACD turns down and crosses, I’d reevaluate short-term momentum.

• Stochastics: Still hovering in the higher range but just beginning to curl lower. It's not a sell signal by itself, but it confirms that momentum is cooling a bit short term. I’m watching for a bounce before it gives a full bearish cross.

• Volume: Normalizing after the recent surge—no red flags here. Pullbacks on lighter volume are usually a good sign that we’re just resetting, not reversing.

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🛠️ Trade Setups

Here’s how I’d look at playing this: Let’s break it down by style: Position Trader, Investor, and Options Trader