Shares of Advanced Micro Devices, Inc. (NYSE:AMD) have been ripping higher. But they’ve reached a potential resistance level. That may put a halt or pause to the rally.
As you can see on the chart below, from January through March the $102.50 level was support for AMD. Every time the stock sold off down to this level, the buyers took control and forced it higher.
But as you can also see, in April the shares broke this support and went lower. Now many of the investors who bought while AMD was at support are losing money.
A number regret their decision and will decide to get out.
But they don’t want to lose money, so they decide to sell their stock at the same price that they bought it at. If there are enough of these sell orders, it will create resistance.
That could occur with AMD around the $102.50 level. This could put some pressure on the price.
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