Advanced Micro Devices: Great Short Term Momentum Trade?

Advanced Micro Devices (AMD) witnessed a 5% surge in its share price after a day of high volume trading. AMD had recently been trending and trading in bearish territory due to getting creamed by competitor chip maker Intel (INTC). AMD has seen a very generous 10.6% rise in the past 5 days, now i would typically find that fast of a rise to be a tad bit irrational, and maybe it is. However, technical indicators point towards a reverse trend from downwards, to upwards movement. Before we hit the charts, lets see some fundamental reasons why AMD share's are poised to rise in price.

• PEG ratio of 1.32% (Low)
• New and more economical chip sets taking market share from Intel.
• Investors recovering, from the behavioral reaction towards the surprise firing of AMD'S CEO in recent days.
• Net operating income increase of $67 million compared to Q3 of 1 million.

All of these factors show fundamental reasons for AMD to rise in value. Today many analyst's upgraded AMD'S future outlook from reduce/hold to buy. Now lets take a look at the charts.

Here we can see that many technical indicators have taken a entirely different direction.

• The CCI has emerged from oversold territory trending now upwards, indicating a bullish trend is now in play.
• The Slow Stochastic Oscillator has crossed the sell signal, now giving off a buy signal.
• The Parabolic SAR indicator is suggesting a new trend upwards is beginning.
• The bollinger bands also indicate this a rebound of the current down trend.

The Stochastic Relative Strength Index shows its soared into the overbought territory. However looking at historical data of this indicator, its hows these overbought conditions typically continue for a duration of 3-4days. This mean's to me we can expect more gains for AMDS stock in the following trading sessions.

From a behavioral point of view, 87% of fellow investors/traders predict AMD shares will make gain's tomorrow and over the following 3 days. So it seems that sentiment towards AMD's stock is favorable as well.

Conclusion? It appears that all Technical and Fundamental indicator's point towards this stock being a short term buy. I would predict that we should see a upward moving trend for another three to four, maybe five trading sessions. I predict AMD will rise 9-13% before pulling back. As for long term share appreciation, well that's a different story. With so much market share being taken away by Intel, it may be a long time until AMD witnesses any significant share price appreciation, but for the short term i think its good for a solid 10 point pop.