AMD Swing Trading: Earn 32.95% with Sector Rotation Strategy
Swing Trader: Sector Rotation Strategy (TA&FA) Generates 32.95% for AMD
For those involved in the financial markets, particularly in the trading arena, the sheer value of a robust strategy cannot be overstated. Such a strategy is the sector rotation approach, which, when combined with Technical Analysis (TA) and Fundamental Analysis (FA), has reaped dividends for those investing in Advanced Micro Devices, Inc. (AMD). This powerful amalgamation of strategies recently manifested itself, generating a substantial return of 32.95% for AMD.
AMD's current performance suggests an upward trend. The financial charts tell a story of optimism, and from a TA perspective, the company has shown a noteworthy trend. It broke its lower Bollinger Band on June 21, 2023, suggesting that AMD's price may rise even higher.
The Bollinger Bands, used by traders to identify 'overbought' or 'oversold' levels, indicate a likely increase in AMD's price. When a stock's price falls below its lower Bollinger Band, it is often seen as oversold. This provides a potential opportunity for traders to buy the stock or explore call options, betting on the likelihood that the price will rise and revert back toward the mean.
In the case of AMD, there's historical precedence to substantiate this optimism. Out of 36 instances where AMD's price broke its lower Bollinger Band, in 34 cases, its price ascended in the month that followed. This translates into an impressive 90% odds of a continued upward trend.
This effective use of TA, when combined with a deep understanding of AMD's fundamentals, aligns perfectly with the sector rotation strategy. This approach implies that an investor will pivot towards sectors that are poised to perform well and typically involves a shift from one industry sector to another, based on economic indicators and market cycles.
In AMD's case, the sector rotation strategy would involve rotating investments toward the tech sector, where AMD resides. The company's strong performance, coupled with positive TA and FA outcomes, makes a compelling case for investors to consider adding AMD to their portfolio.
As traders and investors, it is always crucial to make informed decisions based on robust strategies and tools. AMD's promising upward trend, underpinned by its breaking of the lower Bollinger Band and backed by historical evidence, highlights the effectiveness of the sector rotation strategy when used in conjunction with TA and FA.
The financial market is a game of odds and probabilities, not certainties. Yet, the current 90% odds of a continued upward trend for AMD are encouraging. This reflects the potential of the sector rotation strategy when properly executed, serving as an invitation for traders to possibly pivot their focus towards the tech sector and specifically, Advanced Micro Devices, Inc.
AMD's RSI Oscillator is remaining in oversold zone for 1 day
It is expected that a price bounce should occur soon.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 4 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where AMD advanced for three days, in of 311 cases, the price rose further within the following month. The odds of a continued upward trend are .
AMD may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on September 15, 2023. You may want to consider selling the stock, shorting the stock, or exploring put options on AMD as a result. In of 84 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for AMD turned negative on September 15, 2023. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 45 similar instances when the indicator turned negative. In of the 45 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where AMD declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for AMD entered a downward trend on September 20, 2023. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 63, placing this stock slightly better than average.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. AMD’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (2.819) is normal, around the industry mean (7.929). AMD's P/E Ratio (588.235) is considerably higher than the industry average of (53.587). Projected Growth (PEG Ratio) (1.100) is also within normal values, averaging (2.336). AMD has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.022). P/S Ratio (7.107) is also within normal values, averaging (72.527).
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Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
General Information
a manufacturer of integrated circuits for semiconductors
Industry Semiconductors
AMD and
Correlation & Price change
A.I.dvisor indicates that over the last year, AMD has been closely correlated with ADI. These tickers have moved in lockstep 80% of the time. This A.I.-generated data suggests there is a high statistical probability that if AMD jumps, then ADI could also see price increases.
| Ticker / NAME | Correlation To AMD | 1D Price Change % | ||
|---|---|---|---|---|
| AMD | 100% | +0.09% | ||
| ADI - AMD | 80% Closely correlated | +0.94% | ||
| NVDA - AMD | 77% Closely correlated | +1.45% | ||
| AOSL - AMD | 76% Closely correlated | +3.67% | ||
| ASML - AMD | 74% Closely correlated | +0.86% | ||
| AMAT - AMD | 72% Closely correlated | +0.72% | ||
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