AMD's technical indicators (RSI breakout, price highs) suggest bullish momentum, despite approaching overbought levels.

AMD performed very strongly last year, rising 290% compared to the S&P semiconductor and technology sectors, which rose 55 % and 30% respectively. So , there is a significant performance advantage, and we can also see that among manufacturers of specialized CPU and graphics chips, AMD leads the pack here.

So, we can now see that yesterday we recorded a high of 630.80 . We are currently trading at levels much higher than those in the pre-market phase. We have risen to approximately 640 .

So, this could be a line we will be watching for further potential support.

I also noticed that the candle that formed yesterday was a bullish engulfing candle. Yesterday's large green candle completely swallowed the previous day's small red candle . If we get more upward momentum today, that will be the sure sign.

Our old highs here correspond to the lows that formed after the price gap near 584. The gap also opened near 560. The upward trend line in white is still standing to move forward from here.

So far, our five-day exponential moving average is coming in dark blue at approximately 604.67. The Relative Strength Index (RSI), our momentum gauge, broke the red trendline and surged upwards above the 50 midline, heading towards the overbought zone , which is usually a sign of coming strength in a bull market and indicates an improving pace of gains.

Our trading volume analysis shows that most trades took place here between 472 and 528, with a very small cluster of activity at these higher levels. We can also see spikes in trading volume recently.

Good. We will be looking for a long-term trial deal this time, targeting a monthly expiry date of January 15, this big purple box here , up or down 26.3% over that time horizon over the next 112 days .

Plus one on January 15, 290,750 or, sorry , 690,750,810, buy a butterfly with a $3 discount paid here, bullish outlook.

$300 is our maximum loss, which is the value of the discount paid. The maximum profit is $5,700 if the expiry date is at the double short execution price of 750 here. So, the risk- to-reward ratio is about 1 to 1920 here.

The chances are slim that it will reach exactly this short execution price, but it is possible. The break-even point is 1693, an increase of 8.3% upwards. The break-even point is 2807, which is roughly in line with the expected 26% move here.

One last thing to note, this is also the week of the next earnings event. Therefore, you may want to consider liquidating such positions before the earnings are actually released unless you are willing to accept additional risk.