Getting ready for AMD earnings report
AMD stock has breached below support. Will the AMD price continue declining?
The Advanced Micro Devices is to report Q2 earnings on July 24. In May the U.S. Department of Energy announced that AMD and Cray (NASDAQ:CRAY) had been awarded a $600 million contract to develop the ‘Frontier’ supercomputer to be used for calculations in areas like nuclear and climate research. In Q3 AMD plans to start selling its 7-nanometer (nm) chips. With these smaller and more power-efficient chips, AMD is aiming to take market share from Intel, especially in data center business. Intel’s 10nm chips which will not be sold until the end of the year. AMD expects its Q2 gross margin to be 41%, the highest in eight years on revenue about $1.52 billion, a decrease of approximately 13% YoY. Positive news have been priced in however: AMD price has risen over 90% year to date, and high volatility is likely before the earnings report, and any underperformance may result in steep declines.
On the 4-hour timeframe the S-AMD: H4 has breached below the support line, this is bearish.
Technical Analysis Summary
Position Sell
Sell stop Below 32.42
Stop loss Above 34.85
AMD stock has breached below support. Will the AMD price continue declining?
The Advanced Micro Devices is to report Q2 earnings on July 24. In May the U.S. Department of Energy announced that AMD and Cray (NASDAQ:CRAY) had been awarded a $600 million contract to develop the ‘Frontier’ supercomputer to be used for calculations in areas like nuclear and climate research. In Q3 AMD plans to start selling its 7-nanometer (nm) chips. With these smaller and more power-efficient chips, AMD is aiming to take market share from Intel, especially in data center business. Intel’s 10nm chips which will not be sold until the end of the year. AMD expects its Q2 gross margin to be 41%, the highest in eight years on revenue about $1.52 billion, a decrease of approximately 13% YoY. Positive news have been priced in however: AMD price has risen over 90% year to date, and high volatility is likely before the earnings report, and any underperformance may result in steep declines.
On the 4-hour timeframe the S-AMD: H4 has breached below the support line, this is bearish.
- The Parabolic indicator has formed a sell signal.
- The Donchian channel indicates no trend: it is flat.
- The MACD indicator gives a bearish signal: it is above the signal line and the gap is narrowing.
- The RSI oscillator is falling but has not reached the oversold zone.
Technical Analysis Summary
Position Sell
Sell stop Below 32.42
Stop loss Above 34.85