And now, there's a clear line in the sand that could make way to a buy signal in this big chip stock. To figure out how to trade it, we're turning to the charts for a technical look.
Long term, it's worth noting that the uptrend in AMD remains alive and well this winter. Likewise, while many S&P components sold off to 2018 lows during the correction that started last fall, AMD actually managed to put in lows around the $16 level, a price tag that was still higher than shares had traded up until July of last year.
Now, AMD looks like it's carving out an intermediate-term bottom. Specifically, it's forming a double bottom pattern, a bullish reversal setup that looks just like it sounds. We're seeing similar reversals starting to form in many stocks right now, but the thing that makes AMD unique is the relative level that shares are basing here - it's still in a longer-term uptrend, after all.
The $24 level is the price tag to watch right now.
If AMD can muster the strength to catch a bid above $24, the double bottom officially triggers, clearing the way to a re-test of prior highs set back in September.
It's worth noting that AMD is a more volatile stock than most - sizable swings aren't unlikely, and shares could correct down to $17 without invalidating the double bottom in shares. That said, the $17 level looks like an equally important price tag from a risk-management standpoint; if AMD violates $17, then the uptrend is busted, and you don't want to own it anymore.
Meanwhile, AMD's price action looks constructive on multiple timeframes. A breakout above $24 is the signal that buyers are definitively back in control of things.