Advanced Micro Devices is trading within a parallel channel and coming into the lower end of that channel today with a continued drop in pre-market below yesterday’s close.
The next area of support for AMD sits at a gap fill around $196.60, which represents a technical level where previous trading activity jumped during after-hours. Gap fills often attract buying interest because they mark price zones where the market wants to revisit and establish equilibrium.
Below the gap fill at $196.60, we have the parallel channel boundary down closer to $195, which has been tested multiple times and held as support throughout this pattern. The parallel channel has defined AMD’s trading range with clean technical boundaries, and the lower edge around $195 represents the floor where buyers have consistently stepped in during previous tests. I’ve also annotated a few levels of resistance (horizontal yellow lines) where price could pause following a bounce.
If AMD breaks through both the gap fill and the channel boundary, there’s another area of support from a day when the stock dropped below the parallel channel but didn’t confirm the breakdown. The end of that wide-range red bar candle will still be a good area of support if sellers continue to push price lower today, because it represents a level where significant selling occurred but was ultimately rejected.
For traders watching AMD today, the pre-market weakness is bringing the stock down to these critical support levels, and how it behaves at $196.60 and $195 will determine whether the parallel channel pattern remains intact or if we’re seeing a breakdown.
Source: https://www.fxstreet.com/news/amd-coming-into-lower-end-of-parallel-channel-202602271444
