AMD Shares Hint At A Reversal As Charts Show Bullish Stick Sandwich Following A Double Downgrade From HSBC
Shares of chipmaker Advanced Micro Devices Inc. (NASDAQ:AMD) are most likely poised for a reversal as its candlesticks show a rare pattern despite a double downgrade from HSBC on Jan. 8.
What Happened: The semiconductor stock’s candlestick chart shows a unique ‘Bullish Stick Sandwich’ pattern, a technical trading formation suggesting a potential price reversal upwards.
This pattern typically consists of three consecutive candlesticks visually resembling a sandwich on a price chart, as highlighted in the following chart by Benzinga Pro.
A bullish stock sandwich pattern emerges when a bullish candlestick is sandwiched between two bearish ones. This signals potential buying strength amidst a bearish trend.
A larger middle candle strengthens the signal, however, it could also indicate temporary buyer dominance. Confirmation of a reversal comes from subsequent bullish candlesticks, ideally breaking above the prior bearish highs.
The founder of Rock Trading Group, John, said in an X post, “Call me nuts I believe $AMD could outperform $NVDA this year,” sharing the occurrence of the aforementioned pattern.
Full story available on Benzinga.com