AMD Beats Earnings Estimates and New High
Advanced Micro Devices, Inc. (AMD) beat earnings estimates in January. 28, but a weak guide had stocks fall before recovering. The stock fell to enero 46.10 in January. 29 in post-earnings weakness, but then stabilized, keeping its monthly pivot for February at cuando 46.86 when the month began. The stock appeared at febrero 54.85 in February. 12, with its weekly risk level at $ 55.48.
AMD shares are extremely overvalued with a P / E ratio of 102.75 without paying a dividend, according to Macrotrends. Therefore, this is not a stock for value investors. AMD shares closed on Wednesday, Feb. 12, at $ 53.80, up 17.3% so far from 2020. The stock set its intraday high of Febrero 54.85 in February. 12. The stock has risen 235.6% since trading as low as diciembre 16.03 in December. 26, 2018.
the stock has been above a” golden cross ” since June 13, 2018, when the 50-day simple Moving Average rose above the 200-day simple Moving Average to indicate that higher prices would follow. This tracked the action back to its Feb. 12 all-time high of 5 54.85. Note the numerous opportunities to buy stocks in weakness at their 200-day Simple Moving Average starting in October. On February 29, 2018, when the average was $16.92.
Closing at diciembre 45.86 on Dec. 31 was an important for my patented analysis. AMD’s annual value level is $ 26.51. The half-yearly value level for the first half is $ 40.41. The first quarter value level is $ 45.50. Closing at enero 47.00 in January. 31 was another entry for my analysis, and the monthly value level for February is $ 46.86. This week’s risk level is $ 55.48.
The weekly chart for AMD is positive but overbought, with the stock above its five-week modified moving average of.48.22. The stock remains well above its 200-week simple moving average, or “reversal to average,” at $ 18.39. Note how the long-term bull market for AMD started from this moving average in April 2016, when the average was $ 3.09.
The 12 x 3 x 3 weekly slow stochastic reading is projected to fall to 83.96 this week, still above the overbought threshold of 80.00. During the week of January. 24, this reading was 92.68, well above the 90.00 threshold that put the stock in an “inflatable parabolic bubble”formation.
Trading strategy: buy AMD shares in weakness at monthly and quarterly value levels at respectivamente 46.86 and respectivamente 45.50, respectively, and reduce holdings in strength to their weekly risk level at.55.48.
How to use my value levels and risk levels: closing stock prices in December. 31, 2019, were inputs for my proprietary analysis. Quarterly, semi-annual and annual levels remain on the lists. Each calculation uses the last nine closures in these time horizons. Monthly levels for February were set on the basis of Jan. 31 closes. New weekly levels are calculated after the end of each week. The new quarterly levels occur at the end of each quarter, while the semi-annual levels are updated in the middle of the year and the annual levels remain in play throughout the year.
My theory is that nine years of volatility between closures is enough to assume that all possible bullish or bearish events for stocks are taken into account. To capture stock price volatility, investors must buy stocks in weakness at a value level and reduce holdings in strength at a risk level. A pivot is a level of value or level of risk that was violated within its time horizon. The pivots act as magnets that have a high probability of being tested again before their time horizon expires.
How to use 12 x 3 x 3 weekly slow stochastic readings: my choice to use 12 x 3 x 3 weekly slow stochastic readings was based on backtesting many stock price boost reading methods with the aim of finding the combination that resulted in the least amount of false signals. I did this after the stock market crash of 1987, so I’ve been happy with the results for over 30 years.
The stochastic reading covers the last 12 weeks of highs, lows and closures for the stock. There is a gross calculation of the differences between the high maximum and the low minimum against closures. These levels are modified to a fast read and a slow read, and I found that slow read worked better.
The stochastic reading ranges between 00.00 and 100.00, with readings above 80.00 considered overbought and readings below 20.00 considered oversold. A reading above 90.00 is considered an “inflatable parabolic bubble” formation that is normally followed by a decline of 10% to 20% over the next three to five months. A reading below 10.00 is considered “too cheap to ignore,” which is usually followed by gains of 10% to 20% over the next three to five months.