Semiconductor stocks have undergone strong volatility in recent days: which is not very related to business reasons but to the sensitivity typical of these tech stocks to Fed rates and decisions. The American Central Bank confirms itself as a hawk at the moment and is strongly intent on fighting inflation. While this year’s rate hike should be discounted in prices, the decision to cut the balance sheet has not yet been made and could still generate volatility on the stock. Importantly, we remind you that today at 2.30 pm the US inflation figure for March is to be announced and expected to be at +8.4%. This announcement is particularly important for the US tech world, which is very sensitive to rates.
AMD [AMD.O] is stable at $97.3 in pre-trading. Yesterday, it closed at $97.4. Graphically, the situation is very clear. The stock returned to the key support: a very important watershed at $100. In fact, since July 2021, AMD has always remained above this level. Yesterday, the stock hit this level strongly, giving a SHORT signal. But investors should be careful because the developed candle could generate a bit of retracement. It is therefore better to wait for the pull back to happen and then sell close to $100. Alternatively, one could go SHORT if the lows reached yesterday are exceeded today.
We recommend going SHORT on the stock by buying the Leverage Shares AMD -1X ETP (ISIN: IE00BKT66Q62), on a break of $100 or a breakthrough on yesterday’s lows. Target should be $90 and and stop/loss should be at $103.
