Advanced Micro Devices Revisited: Oversold & Undervalued?

Yesterday Alex Guana an analyst at JP Morgan moreless bashed AMD saying its new fusion chipsets will have no competitive advanatge towards intel, and is moreless no longer a relevant company in the semi-conductor industry. Now his comments may have some merit, but they certainly are biased. Many mainstream desk-top building fans, as well as major companies such as HP typically purchase AMD chipsets due to their performance to price ratio. AMD sells semiconductors that are slightly less powerful than intel's but half the price...in this economy value is what consumers are looking for. Regardless of the constant banter back and forth over what manufactuer is better lets take a look at what the charts have to say.

Based off of technical analysis of AMD here are some points suggesting a trend reversal.

• The latest trading day has shown the candle stick to close below the lower bollinger band..when this occurs this almost invariably should be used as a entry postion and almost always signals a buy.
• The CCI indicator is at -293..lmao...when the CCI line crosses -100 its considered very overvalued......i can honestly say i have never seen CCI approach these low levels unless there is some sort of major event or crash.
• AMD has been in a downwards trend for many weeks now, it seems to gravitating towards a more so sideways trading range..or so i predict. (illustrated with pink trendlines i inserted on the chart) So we can expect to see less volatile price movement.

Overall i think the recent price slide, is the reaction of noise traders and investors towards Alex Guana's comments, as well as the associated slide in the tech sector this week. AMD is a major company and when funds and traders liquidate positions in mutual funds, etf's, or sector based portfolios, AMD being a major tech stock will take a hit on negative volume.

Conclusion? I think AMD is reaching at, or approaching a bottom, and i believe making and entry trade now would be a profitable stratgey.........i expect to see AMD approach $7.60-$8.20 per share in the next 3 or 4 weeks.

Position: Long