Swing Trade Idea (AMD) – June 4, 2021
Our bearish trade for Friday, June 4th is AMD (Advanced Micro Devices Inc). AMD is part of the Technology Sector (XLK). XLK has experienced a 0.42% gain in the last month and its 1M and 6M trends turned neutral yesterday.
AMD’s 1M trend turned bullish as price rallied to an area of resistance but the 6M trend remains neutral providing a good bearish entry. With a technical score of 1 (out of 10), AMD is a very weak stock that will likely move lower.
As a stop loss, if AMD were to trade above $84.00 for multiple days, this would invalidate our analysis and we would focus on cutting losses on the trade. We also would consider cutting losses on this options trade if the value of the vertical spread moves above $5.14.
