AMD Shares Surge 4.77% to $121.73 on Bullish Technicals and Heavy Volume

Advanced Micro shares advanced 4.77% to $121.73 in the most recent session, marking a two-day cumulative gain of 5.22% on elevated volume, suggesting renewed bullish momentum after testing intermediate support earlier in the week.
Candlestick Theory
The recent price action exhibits constructive candlestick patterns. The session ending June 9th formed a robust bullish candle with a high-volume close near the session peak ($122.37 high, $121.73 close), indicating strong accumulation pressure. This follows a hammer-like formation on June 6th (low $115.88, close $116.19), which found support near the psychological $116 zone. Key resistance resides at the May 14th swing high of $122.52, while immediate support holds at the June 6th low of $115.88. A decisive break above $122.52 would confirm bullish continuation, whereas failure to hold $118.50 might signal short-term exhaustion.
Moving Average Theory
The moving average structure confirms a bullish primary trend. The 50-day MA (≈$119.80) maintains its upward slope above the ascending 100-day (≈$114.50) and 200-day (≈$107.30) averages, signaling sustained intermediate-term strength. Price currently trades above all three key averages, reinforcing positive momentum. Of note, the 50-day/100-day golden cross formed in early May remains intact, while the 50-day/200-day premium continues to widen, indicating strengthening investor confidence.
MACD & KDJ Indicators
The MACD histogram has turned positive after a bullish crossover below the zero line, suggesting emerging upward momentum despite recent consolidation. The KDJ oscillator presents a more immediate bullish signal, with the %K line (79) crossing above %D (72) in neutral territory. Neither indicator currently flags overbought conditions (MACD remains sub-zero, KDJ below 80), supporting room for further upside. This confluence hints at a reversal from the oversold dip observed in late May.
Bollinger Bands
Volatility compression preceded the current breakout, with the bands contracting notably in early June (bandwidth ≤4% vs. 8% in May). Price has now pushed above the middle band (20-day MA ≈ $118.40) and tests the upper band ($123.60), typically signifying bullish momentum confirmation. The expansion from the June 3rd low ($113.28) occurred on rising volume, enhancing pattern reliability. A sustained close above $123.60 could trigger accelerated gains, though traders should monitor for mean-reversion pullbacks to the $118.40 MA support.
Volume-Price Relationship
Volume dynamics validate the recent advance. The June 9th surge occurred on volume 104% above the 20-day average, confirming institutional participation. This follows higher-than-average volume during the June 3rd-5th consolidation, suggesting absorption of selling pressure. Notable accumulation occurred near $115-118, establishing a volume-supported support zone. However, the absence of climactic volume versus the May 14th peak ($122.52 on 86.7M shares) warrants caution regarding near-term overhead supply.
Relative Strength Index (RSI)
The 14-day RSI (62) climbed from a neutral 48 reading three sessions prior, reflecting strengthening momentum without entering overbought territory. While trending upward, it remains below the 70 threshold that historically triggered pullbacks during this cycle. RSI divergence emerged in late May when price made lower lows while RSI stabilized near 45, foreshadowing the current rebound. Current levels suggest moderate bullish energy with additional runway before technical exhaustion.
Fibonacci Retracement
Applying Fibonacci to the primary uptrend from the April 8th low ($76.48) to the May 14th peak ($122.52) reveals significant confluences. The recent pullback to $113.28 (June 3rd) held precisely at the 38.2% retracement level ($113.50). Current price action challenges the 23.6% retracement ($118.20) as support-turned-resistance. A sustained breakout above $122.52 opens technical targets at 127.2% ($130.80) and 161.8% ($142.50) extensions. Critical Fibonacci support now converges with the 50-day MA near $119.80, creating a high-probability defense zone.