Chipmakers have traded strong in June, and AMD is leading the charge with a clear technical breakout that points to a continued bullish trend.
AMD recently broke out from a prolonged consolidation phase, fueled by a classic inverse head and shoulders pattern marked with yellow rectangles. This bullish reversal pattern signaled the potential for a significant upside move once the neckline—marked in black—was broken.
That breakout happened on the 16th of June. The price surged above the neckline, triggering a proper long-term signal to buy. Since then, AMD has been climbing steadily, confirming the strength of the breakout and the positive sentiment surrounding the stock.
While a short-term correction may occur after such a strong move, especially in a sector as volatile as semiconductors, the dominant technical setup remains bullish. As long as the price holds above the neckline, the buy signal stays active and intact.
If the bullish momentum continues, AMD could target higher resistance levels in the coming sessions. However, a drop back below the neckline would weaken the technical outlook and could suggest a period of consolidation or a deeper correction.