Is AMD stock a buy? A buyTheDip consideration at ForexLive.com

AMD Stock before NVDA’s quarterly earnings event this week: After the failed breakout

After AMD’s attempt at breaking out from a potential bull flag on the daily chart failed, two key paths are under observation. It’s crucial to emphasize that this is not a forecast or a trading plan but rather an analytical perspective on possible market behavior. The buyTheDip strategy was previously outlined, where two out of three buy orders have already been executed, with the possibility of the third still pending.

Is AMD Stock a Buy Right Now?

The chart presents two possible paths for AMD’s price action:

1. Path 1 – AMD finds support around the $109-$110 region and attempts to regain momentum for another breakout attempt. A confirmed close above resistance could validate a bullish continuation.
2. Path 2 – The stock fails to hold immediate support and extends its pullback towards the $106-$103 range before forming a stronger base for recovery.

AMD Stock buyTheDip Plan

This approach follows a layered buying strategy, ensuring a structured allocation at key support levels. The budget proportions must be maintained as outlined below. This AMD stock buying plan was already published on ForexLive.com (stay tuned for others) and 2 of the 3 buy orders were already filled, but the plan is still relevant for those that seek an opinion of 1 way to buy. At your own risk only, this is not financial advice. The budget/cost mentioned is just an example but the proportions matter.

First Buy Zone

• Price: $111.08
• Position Size: 20 shares (16.67% of the budget)
• Total Cost: $2,222

Second Buy Zone

• Price: $106.87
• Position Size: 40 shares (33.33% of the budget)
• Total Cost: $4,191

Third Buy Zone (Pending Execution)

• Price: $101.38
• Position Size: 60 shares (50% of the budget)
• Total Cost: $6,083

Weighted Average Entry Price (WAP) for AMD Stock

If all buy orders are filled, the Weighted Average Entry Price (WAP) is calculated as:

WAP=(111.08×20)+(106.87×40)+(101.38×60)120WAP = frac{(111.08 times 20) + (106.87 times 40) + (101.38 times 60)}{120}WAP=104.13WAP = 104.13

AMD Stock Stop-Loss Consideration

• Stop-Loss Level: $95.80 (8% below WAP)

This structured approach ensures an average cost basis of $104.13 with risk management in place. The next price movements will dictate whether AMD stabilizes at these levels or extends its correction before resuming a potential recovery.

Should You Buy AMD Stock?

• The failed breakout has led to uncertainty, but AMD remains within a structured price range.
• Two out of three buy orders have already been executed in the buyTheDip plan, with the third potentially still active.
• The weighted average entry price, if all orders execute, is $104.13, with a stop-loss at $95.80.
• Both scenarios (Path 1 and Path 2) suggest watching key support and resistance levels before determining the next directional move.

AMD’s current price action suggests patience is key. Investors looking to follow the buyTheDip strategy should wait for a confirmed reversal or additional weakness before committing further capital. As always, trade at your own risk, and stay disciplined in executing your plan based on market behavior.

IMPORTANT: Stay tuned for updates, incluiding possible partial take profit targets for risk mitigation (if and when applies), within the comments below.

This article was written by Itai Levitan at www.forexlive.com.