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Swing Trade Idea (AMD) – January 11, 2024

Our bearish trade for Thursday, January 11th is Advanced Micro Devices Inc. (AMD). AMD is part of the Technology Sector, which has performed at 2.14% over the last month, with AMD overperforming relative to its sector at 15.22% over the same period, with both that have traded into areas of resistance.

AMD has been extremely bullish since the start of November 2023 and traded into an area of resistance at $150, where it formed a double top. As its sector has also traded into an area of resistance and both are pulling back from these levels, we expect to see further downside with the next area of support at $134.

As a close, if AMD were to trade above $152 for multiple days, this would invalidate our analysis and we will consider cutting losses on the trade. We will also cutting losses on this options trade if the value of the vertical spread moves below $2.93.