AMD closed at 214.24 USD, gaining +3.93% for the day.
The daily chart (as of the November 26 close) shows bulls defending a key support area after a deep correction. Below is the technical read based on the chart in today’s video.
AMD Stock Technical Analysis Video Made Simple & Effective
1. The Trend Line Break and Why It Trapped Retail Traders
On November 20 and 21, AMD broke below the rising trend line.
Many retail traders likely shorted that breakdown, assuming it confirmed a bearish continuation.
This is the classic trap.
Price quickly retested and pierced back above the trend line on November 24, forcing late short sellers to cover. This behavior signals that the breakdown lacked conviction and that buyers were waiting to step in.
The structure now favors a push toward the 20 day EMA and toward the November 7 swing low near 224.5. For short sellers still holding, this zone is where they typically reassess or take profits.
2. Context: A Deep Correction That May Be Ending
AMD has already corrected sharply:
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6.96% down in 1 week
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16.92% down in 1 month
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Over roughly 27 calendar days / 19 trading days, AMD dropped more than 27% from the highs
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The all time high was $267.8 on October 29, 2025
Most investors treat 20% as a classical correction threshold.
AMD is far beyond that and is now stabilizing around a price level that aligns with “fair value” after removing the excessive surge from early October.
This makes the current zone attractive for investors watching for the end of a correction cycle.
3. A Double Bottom Gives Bulls Room to Breathe
AMD formed a recognizable double bottom:
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First bottom: November 21
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Second bottom: November 25
This shows buyers defending the same area twice within a short period.
It strengthens the argument that a temporary floor has formed unless the market breaks significantly lower.
4. The Line in the Sand: $198.30
This is the most important part of the analysis.
198.30 USD is the medium term level that bulls must defend:
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It aligns with volume profile support from the last four to five trading days
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It sits underneath the $200 round number, a psychological level watched by both institutions and retail
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A daily close below $198.30 puts AMD at risk of another 11% decline, targeting the region around $174
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A gap around $170.68 is also sitting below, created during the massive AMD x OpenAI announcement which triggered a 37 percent surge that same week
For swing traders and long term investors, $198.30 is the key invalidation level.
Short term day traders will naturally have tighter stops.
5. Range Bound Trading Likely Before Next Big Move
Until a clear breakout occurs, AMD may trade inside a range:
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$198 to $214
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Possibly extending to $225 to $227 if momentum builds
This range reflects a market that has removed excess and is now searching for direction. The broader market will also influence AMD’s next move.
6. Upside Targets in the Near Term
If AMD continues to hold above support:
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Retest of the 20 day EMA
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Move toward the $224.5 to $225 zone
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Break above $227 would shift sentiment more decisively in favor of bulls
Short sellers who did not cover during the trend line reclaim will be squeezed in that 224 to 227 region.
Is AMD Stock Done With Its 27% Correction? Watch the Line in the Sand.
AMD’s correction has been deep, fast, and arguably overextended. Buyers are now defending a meaningful area on the chart, and unless AMD closes below $198.30, the path of least resistance leans toward consolidation or a bounce toward the mid $220s.
This analysis is meant to give orientation for both traders and long term investors who follow AMD closely.
For more technical perspectives and real time updates, visit investingLive.com.
This article was written by Itai Levitan at investinglive.com.
