AMD - down 21% from its peak, back to trading within the previous breakout channel

Taking a look at AMD in this instance, since the 8^th of March its share price has fallen just over 21% from the peak. Currently, its stock is trading at around $180.14 a share. Based on the daily chart, we can see that the price has re-entered the channel that it broke out from back in February. The bulls are now trying to find a bottom, as indicated by some hammer candlesticks over recent days, but it is unclear whether the stock has found a higher low as of yet. The next support in focus reads $172.03 (yesterday’s low), a break below it could possibly see a sell-off towards the lower half of the channel where the key support of $159.74 is located. If the AI rally is to continue this week, then resistance can be found at $184.91 (upper trendline of the channel). A break and close above this level would suggest that a fresh higher low has been formed, prompting the bulls to target the area of $190-$195 once again. However, caution should be in place as the technical indicators have tilted towards the bearish bias as of late. The MACD is still widely negative and the RSI is only just in a neutral positive as it reads 46.