U.S. equities are quietly working on two-straight weeks of notable gains and progress on the long side, as stocks continue to stay above key levels following last week’s rally. With that in mind, here are a few top stock trades we’re watching now.
Advanced Micro Devices (AMD)
Traders I have spoken to recently can’t stop pecking at Advanced Micro Devices(NASDAQ:AMD). They sawthe powerful move in Nvidia(NASDAQ:NVDA) and are wondering if AMD can generate something similar.
AMD stock has done a great job breaking out of its downward channel (blue lines). However, it continues to struggle with the 50-day and 200-day moving averages. At the same time, it’s holding the 10-day and 21-day.
It’s a mixed picture and we need some resolution. A break of Wednesday’s low puts $110 in play and potentially lower if the sellers really lean into AMD stock. Maybe even near $100 in that scenario.
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On the upside, a move over this week’s high near $118 could put the $124 to $125 area in play. More specifically, though, I’ll be watching to see if AMD stock can get to $129 to $132 area — the 21-week moving average and the 50% retracement.
AMC Entertainment (AMC)
After a powerful two-day rally where AMC Entertainment(NYSE:AMC) gained more than 30%, the stock is now reclaiming a very key level.
Shares are back over the $20 mark, which was first a major high in January 2021, then a major breakout area in May 2021, support in December 2021, then resistance in 2022.
I know that’s a bit loaded, but it highlights how key this level has been. AMC stock is also back above the 10-day, 21-day and 50-day moving averages.
If long, I would consider trimming some of the position now, then some more near $24 to $25, which is the 21-week moving average. Above that could put downtrend resistance in play, followed by another big level near $33.
On the downside, however, a move back below $20 could put AMC’s cluster of daily moving averages back in play (the 10-day, 21-day and 50-day).$Apple(AAPL)$ $SPDR Gold Shares(GLD)$ $AMD(AMD)$ $AMC Entertainment(AMC)$
source:nxtmine
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