AMD Shares Rise 4.35% as Bullish Technical Indicators Suggest Uptrend Continuation

Advanced Micro Devices (AMD) closed the most recent session up 4.35%, indicating strong short-term bullish momentum. This price action, coupled with the historical data spanning a year, allows for a comprehensive technical analysis across multiple frameworks to assess potential continuation or reversal signals.
Candlestick Theory
Recent candlestick patterns exhibit a bullish engulfing formation as prices surged from $214.16 to $223.47, with the close near the high of the session. Key resistance levels are evident at $220–$222, where previous price action showed consolidation, while support is reinforced around $214–$215. The formation of higher highs and higher lows over the past month suggests an uptrend, though a breakdown below $214.16 could trigger a retest of prior support at $206–$207.
Moving Average Theory

The 50-day moving average (calculated to ~$217) is above the 200-day MA (~$194), confirming a bullish intermediate-term trend. The 100-day MA (~$209) aligns with the 200-day as a dynamic support level. The recent close above the 50-day MA reinforces the uptrend, but a crossover below the 100-day MA could signal a bearish shift. The 200-day MA remains a critical threshold for trend sustainability.
MACD & KDJ Indicators
The MACD histogram has expanded positively, with the line above the signal line, indicating strengthening bullish momentum. The KDJ indicator (Stochastic) shows the %K line (~85) and %D line (~78) entering overbought territory, suggesting a potential short-term pullback. However, the MACD’s strength implies the uptrend may persist despite overbought conditions, as the KDJ divergence (bullish) aligns with the MACD.
Bollinger Bands
Volatility has increased sharply, with prices nearing the upper band (~$227). The recent contraction of Bollinger Bands in early January followed by expansion suggests a breakout is underway. Prices within the upper 2σ band confirm high volatility, but a retest of the lower band (~$209) could offer a buying opportunity if the trend holds.
Volume-Price Relationship
Trading volume surged to ~36.45 million shares on the most recent session, validating the price increase. Sustained high volume above the 20-day average (~25 million) supports the validity of the uptrend. However, declining volume on future up sessions may signal waning momentum, necessitating caution.
Relative Strength Index (RSI)
The 14-day RSI (~72) is in overbought territory, typically signaling a potential correction. However, in strong trends, prices can remain overbought for extended periods. A close below 60 would suggest weakening momentum, while a retest of the 70+ level could indicate continuation. Divergence between RSI and price action (e.g., lower highs in RSI despite higher price) would raise caution.
Fibonacci Retracement
Applying Fibonacci levels to the key high ($238.60 in October 2025) and low ($96.06 in March 2025), the 61.8% retracement level (~$183) has been surpassed. The current price (~$223) aligns with the 78.6% retracement (~$216), suggesting a critical resistance zone. A break above this level could target the 100% extension (~$238), but a failure to hold above $216 may trigger a retest of the 50% level (~$167).
Confluence and Divergences
The alignment of the 50-day MA, MACD, and Fibonacci 78.6% retracement (~$216) creates a strong confluence of bullish signals. However, the RSI’s overbought condition and proximity to the upper Bollinger Band introduce short-term risk. A bearish divergence in the KDJ (if %K fails to make a higher high) would contradict the MACD’s bullishness, necessitating a reassessment of trend strength.

Conclusion
The technical landscape for AMD suggests a continuation of the uptrend in the near term, supported by strong momentum indicators and Fibonacci alignment. However, overbought conditions and potential KDJ divergence warrant monitoring for short-term corrections. Traders should watch for a break above $220–$222 to confirm the next leg higher or a pullback to $214–$215 for reentry opportunities. Probabilistic language underscores that while the bias is bullish, volatility and divergences could introduce countertrend risks.