Account
New to ADSS? Open an
account now to get started.
Already have an account?
Add funds to your ADSS account
Account
New to ADSS? Open an
account now to get started.
Add funds to your ADSS account
Asset Watch
Tuesday, December 3, 2024
With the ‘Trump Trade’ supporting cyclicals and America-centric assets, the AI winners have lost their lustre. However, as the economic impact of AI is likely to bolster global productivity and potential GDP growth, AMD’s bull market could have plenty of room to run.
But should you position for further upside before the enthusiasm returns?
On Nov. 21, Indeed reported that “Generative AI (GenAI) usage in global workplaces has surged over the past year.”
More specifically, “The share of job postings mentioning GenAI or related terms has skyrocketed over the past year, up 3.5 times in the United States and even faster in other countries.”
Adding, “Data analytics consistently ranks as the sector with the highest GenAI postings share across all nine analysed countries. Scientific research and software development also rank highly in eight of these countries.”
So, while AMD’s stock price has suffered, the fundamentals driving its long-term performance remain robust.
Despite the recent correction, AMD remains in a long-term uptrend with higher lows realised throughout the current bull market. Moreover, price support and the 100-week moving average (the yellow line) align near $131, and the latter has been a key source of support during the last two sell-offs.
Another ally for the bulls is the recent behaviour of AMD’s weekly RSI (the blue line at the bottom). If you analyse the recent lows, you can see that the stock has bottomed with the RSI in the 40-45 zone. Plus, the last two major lows occurred with the RSI in this range and the stock reaching its 100-week MA.
Consequently, with a similar setup now present, history suggests a favourable risk-reward of owning AMD over the next few months.
Depending on your risk tolerance, aggressive traders may prefer to enter a position now and play for a rally back toward $170. Conversely, a more conservative approach is to wait for the stock to retest $131 and make your move if the pullback occurs.
ADSS
8th floor, CI Tower
Corniche Road
PO Box 93894
Abu Dhabi
United Arab Emirates
Trading Services
ts@adss.com
+971 2 657 2414
Investing in CFDs involves a high degree of risk that you will lose your money due to the use of leverage, particularly in fast moving markets, where a relatively small movement in the price can lead to a proportionately larger movement in the value of your investment. This can result in loses that exceed the funds in your account. You should consider whether you understand how CFDs work and you should seek independent advice if necessary.
ADS Securities LLC – S.P.C (“ADSS”) is authorised and regulated by the Securities and Commodities Authority (“SCA”) in the United Arab Emirates under First Category: Dealing in Securities and Fifth category: Arrangement and advice (Introduction). ADSS is a Limited Liability Company – Sole Proprietorship Company incorporated under United Arab Emirates law. The company is registered with the Department of Economic Development of Abu Dhabi (No. 1190047) and has its principal place of business at 8th Floor, CI Tower, Corniche Road, P.O. Box 93894, Abu Dhabi, United Arab Emirates.
The information presented is not directed at residents of any particular country outside the United Arab Emirates and is not intended for distribution to, or use by, any person in any country where the distribution or use is contrary to local law or regulation.
ADSS is an execution only service provider and does not provide advice. ADSS may publish general market commentary from time to time. Where it does, the material published does not constitute advice, or a solicitation, or a recommendation to a transaction in any financial instrument. ADSS accepts no responsibility for any use of the content presented and any consequences of that use. No representation or warranty is given as to the completeness of this information. Anyone acting on the information provided does so at their own risk.
