AMD stock price has been trading mostly sideways for the last year. Price has been trading with a base around $72-$74 and a high of $99. A head and shoulders pattern has been formed and now we are currently at the right hand shoulder.
Green lines- head and shoulders pattern
AMD stock price has support at the black neckline at $72-$74. Breaking below this level will activate the head and shoulders pattern and give us a target of $48. Breaking therefore below the neckline will give us an important bearish signal. On the other hand, bulls will need to break above the right hand shoulder highs at $89.20 in order to decrease dramatically the chances of activating the bearish pattern.