AMD has underperformed peers but not for much longer
AMD seems to be the contrarian play in the semiconductor field right now so I'm going to go ahead and suggest starting a position at these levels around $90 a share. It has been outperformed by its peers to a great degree recently for no apparent reason. I assume profit-taking attributed to taking it down from nearly $100 a share.
Buy under $93.
Sell half at $110.
It will retest the $100 level, breakthrough, and hit resistance at about the $110 level from profit takers. Slight chance it has more legs than that but I'd say $110 is a fair price target for this stock.
The SMH is up 11% in the last month and a half and AMD is down nearly a percent. Easy 10% return on this trade if not 20% if it hits my estimated price target.
Buy under $93.
Sell half at $110.
It will retest the $100 level, breakthrough, and hit resistance at about the $110 level from profit takers. Slight chance it has more legs than that but I'd say $110 is a fair price target for this stock.
The SMH is up 11% in the last month and a half and AMD is down nearly a percent. Easy 10% return on this trade if not 20% if it hits my estimated price target.
