SANTA CLARA, CA – Shares of semiconductor company Advanced Micro Devices (AMD) closed in positive territory on Friday, but the daily gain masks underlying weakness that could spell trouble for the stock at the start of next week.
AMD stock finished the day at
1.45 (1.14%). However, the session was marked by significant volatility and a failure to hold early gains. A slight dip of 0.03% in after-hours trading added to the cautious sentiment.
The intraday chart tells a story of a bullish start that quickly fizzled. The stock opened strong at
129.00andsurgedtoasessionhighof∗∗129.00 and surged to a session high of **132.80** within the first hour. However, this peak was short-lived as sellers stepped in, driving the price down to a low of $127.55. For the remainder of the day, AMD was unable to mount a meaningful recovery, trading sideways in a tight range well below its opening price.
Market Outlook: Will the Market Go Down on Monday?
While the stock closed green for the day, the technical signals from Friday’s session lean bearish for Monday’s open.
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Intraday Reversal/Fade: The most significant warning sign is the stock’s inability to hold its morning strength. A strong open and surge followed by a sell-off that results in a close below the opening price is a classic bearish pattern, indicating that sellers overwhelmed early buyers.
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Weak Close: The stock closed much closer to its daily low (
132.80). This shows that sellers were in control as the session ended, and there was not enough buying pressure to push the price back up.
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Lack of Afternoon Momentum: The flat, sideways price action throughout the afternoon suggests buyer exhaustion and a lack of conviction to push the stock higher.
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Despite the positive daily change, the price action within the day was weak. The failure to hold early gains is a significant red flag. Based on this intraday fade, there is a higher probability that the market for AMD stock will go down or face selling pressure on Monday. The key level to watch will be the day’s low of $127.55; a break below that could lead to further declines.
Disclaimer: This article is based on the analysis of the provided image and is for informational purposes only. It is not financial advice. Market conditions are subject to change rapidly.
