AMD Shares Fall 6.13% as Bearish Technical Signals Drive 6.33% Two-Day Decline

Advanced Micro Devices (AMD) fell 6.13% in the most recent session, marking a two-day decline of 6.33%. This sharp correction has triggered multiple technical signals across timeframes, with bearish momentum dominating the short-term structure.

Candlestick Theory

Recent price action exhibits bearish engulfing patterns and long lower shadows, particularly evident in the two-day selloff. Key support levels align with prior swing lows at $214.14 (Dec 31, 2025) and $213.03 (Dec 26, 2025), while resistance is clustered near $240.55 (Jan 28, 2026) and $250.21 (Jan 28, 2026). A breakdown below $214.14 may target $203.07 (Nov 24, 2025) and $199.80 (Dec 19, 2025) as extended support.

Moving Average Theory

The 50-day MA ($230.45) and 100-day MA ($235.12) are in bearish alignment with the 200-day MA ($240.38), forming a descending slope that reinforces the downtrend. Price action below all three averages suggests continuation of the bear phase, though a crossover above the 50-day MA could signal a short-term consolidation phase. The 200-day MA remains critical; a sustained break below $230.45 may accelerate the decline toward $213.03.

MACD & KDJ Indicators

The MACD histogram is contracting, indicating weakening bearish momentum, while the KDJ stochastic oscillator shows the %K line ($20.3) and %D line ($21.7) in oversold territory. This suggests potential for a countertrend bounce, though the slow stochastic’s downward drift implies the bearish trend may persist. Divergence between price and RSI (discussed below) weakens the reversal probability, favoring a continuation of the decline unless a bullish crossover occurs.

Bollinger Bands

Volatility has expanded, with price testing the lower band at $234.55 (Jan 30, 2026). The bands’ width ($10.69) reflects heightened uncertainty, typical during trend exhaustion phases. A rebound above the 20-day MA ($238.45) could trigger a mean reversion trade, but a breakdown below the lower band may target $214.14 and $203.07.

Volume-Price Relationship

Volume surged on the initial down day (40.04M shares) but declined on the second session (31.69M shares), suggesting weakening bearish conviction. This divergence may hint at a potential short-term pause in the downtrend, though confirmation via a volume spike on a bullish reversal is needed to validate sustainability.

Relative Strength Index (RSI)

RSI has dipped to 28.6, entering oversold territory, which typically signals short-term exhaustion. However, given the broader bearish context, this may not trigger a reversal but rather a shallow pullback. A move above 30 would require a rally to $238.50, while a breakdown below 20 (trigger level at $213.03) could extend the decline toward $203.07.

Fibonacci Retracement

Key retracement levels align with critical support/resistance clusters: 23.6% at $247.50, 38.2% at $240.50, 50% at $233.50, and 61.8% at $226.50. The current price near $236.73 (Jan 30) is testing the 50% retracement level, which may act as a pivot point. A breakdown below $226.50 would target $214.14 and $203.07, while a rebound above $240.50 could initiate a 23.6% retracement rally.

Confluence and Divergences

Strong confluence exists at $233.50 (50% Fib) and $240.50 (38.2% Fib), where RSI oversold conditions and Bollinger Band positioning align with potential support. However, divergence between the MACD histogram contraction and price weakness suggests the downtrend remains intact. Traders should monitor volume on potential bounces and watch for a bearish crossover in the KDJ stochastic to confirm continuation.