Advanced Micro Devices Inc. AMD shares traded higher Monday alongside other chip and semiconductor stocks after a weekend report from the Semiconductor Industry Association showed November sales of $51.7 billion.

Additionally, a report from Euler Hermes showed expected semi sales growth of 9% for 2022.

AMD was up 4.41% at $150.24 at the close. 

AMD Daily Chart Analysis

• Shares are nearing resistance in what traders call a bullish flag pattern after trading in a slightly downward sloping channel. The stock could see a large bullish move if it is able to break above resistance in the pattern on above average volume.
• The stock trades above both the 50-day moving average (green) and crossed above the 200-day moving average (blue) Friday. This indicates the sentiment is turning bullish, and each of these moving averages may hold as an area of support in the future.
• The Relative Strength Index (RSI) has been forming higher lows the past few weeks and now sits at 55. This shows that the stock has been seeing more and more buyers entering into the stock and buyers outweigh sellers overall.

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What’s Next For AMD?

If the stock can continue to move higher and break past the pattern resistance, it may be able to see a strong bullish move. Currently, the resistance line is an area where the stock is having trouble crossing. If the level can be crossed on increasing volume, it may signal a bullish run is coming.

Bears on the other hand are looking to see the resistance level be unable to break and for the stock to drop below the pattern support and below the moving averages.