Bearish trend continues but the indicators are pointing to a possible bounce near-term

AMD’s price is now hovering above trendline support as the sell-off continues, this trendline should act as a base for the near-term, maybe even a bounce from this potentially current interim bottom as the US markets are trying to recover. The worrying factor in the shorter term is the current positioning of the moving averages, the 50MA is approaching the 200MA. If it manages to remain above, then consolidation could be the next stage. However, if it crosses below it, then this could lead to more volatility. The resistance along the descending trendline may cause some difficulty between $150-$160, on the other hand, a break above it may see an end to this bearish trend that began in early March. AMD’s shares are trading at around $132.74 a share with the following key levels towards the downside to keep an eye on, trendline support around $122. Followed by $120 and then $111-$110. Towards the upside, a move above $138-$139 would then see $150-$155 as the next area in focus. The technical indicators are showing greater optimism than the price action itself. The MACD looks like it’s starting to bottom out and there is a slight bullish divergence on the RSI as it grinds its way out of the oversold territory.