AMD Surges 5.69% to $172.40 as Technical Indicators Signal Bullish Rebound

Advanced Micro Devices (AMD) surged 5.69% on the latest trading session (2025-08-07), closing at $172.40 after volatile price action earlier in the week. The following technical analysis evaluates key indicators using the past year’s data, emphasizing confluences and divergences across methodologies.
Candlestick Theory
AMD's price action reveals critical support near $157.80 (2025-08-06 low), validated by the sharp rebound to $172.40. Resistance is established at $182.50 (2025-07-31 high), aligning with the 2025-08-05 high of $177.99. The bullish engulfing pattern formed on 2025-08-07—closing above the prior day’s high after a 6.42% decline—signals short-term bullish sentiment, though sustained upside requires overcoming the $175.75–$182.50 supply zone.
Moving Average Theory
AMD trades above all key moving averages (50-day, 100-day, 200-day), reinforcing the long-term uptrend. The 50-day MA (near $155–$160) provided dynamic support during the early August pullback. Golden crosses persist, with the 50-day above both 100-day and 200-day MAs. However, the gap between shorter and longer-term MAs has narrowed, suggesting potential consolidation after the rapid ascent from Q2 2025 lows.
MACD & KDJ Indicators
MACD (12,26,9) shows a bearish crossover near August’s onset, reflecting momentum loss after the July peak. The histogram remains negative but is flattening, hinting at easing downward pressure. KDJ (9,3,3) exited oversold territory (K/D < 20) on 2025-08-07, with J-curve rising sharply from -5 to 35, signaling near-term recovery potential. Confluence emerges as both indicators align for a bullish reversal, though MACD needs a definitive crossover for confirmation.
Bollinger Bands
Volatility expanded during the August sell-off, with prices breaching the lower Bollinger Band (20-day SMA ±2σ) on 2025-08-06 at $157.80. The subsequent rebound to mid-band ($167–$170) indicates mean reversion. Band width remains elevated, implying ongoing volatility. A close above the 20-day SMA ($168–$170) may signal bullish continuation, while failure risks retesting lower band support.
Volume-Price Relationship
High-volume sell-off (133.6M shares on 2025-08-06, -6.42%) validated breakdown momentum. The rebound on 2025-08-07 occurred on 94.9M shares—moderately lower volume but sufficient to sustain gains, suggesting short-covering and cautious re-entry. Divergence appears in late July: new highs ($182.50) on declining volume, foreshadowing the August correction. Volume must expand on rallies to confirm bullish conviction.
Relative Strength Index (RSI)
The 14-day RSI plunged to 28 (oversold) on 2025-08-06, triggering the rebound to 45 (neutral) by 2025-08-07. Prior July peaks saw RSI exceed 70 (overbought), warning of overheating. Current RSI trajectory supports short-term upside, but divergence existed at July’s peak: higher highs in price not matched by RSI, signaling latent bearish momentum.
Fibonacci Retracement
Applying Fib levels to the swing low ($76.48 on 2025-04-08) and high ($182.50 on 2025-07-31) shows the August drop bottomed near the 23.6% retracement ($157.50), a critical support confluence zone. Key upside levels include the 38.2% ($142) as secondary support and $175–$182.50 (0–23.6% retracement zone) as resistance. The rebound from 23.6% aligns with moving average and RSI support, strengthening its technical relevance.
Confluence and Divergence Notes
Strong confluence exists at $157.50–$158, combining the 23.6% Fib level, KDJ oversold signal, and volume-backed reversal. Divergence occurred in late July between price (higher high) and both RSI (lower high) and volume (diminishing participation), foreshadowing corrective pressure. Current indicators suggest the pullback may be exhausted, but sustained recovery requires clearance of $175.75 with volume expansion.