Shares of Advanced Micro Devices, Inc. (NYSE:AMD) have reached a support level. This means they could rebound and rally.
Support is a large concentration of investors who are trying to buy shares close to the same price. As you can see on the following chart, in this case, there has been support for AMD around the $73.50 level.
Sometimes, stocks rally after they get to support. This happens when investors start to pay higher prices because they think that some of the other investors will increase the amount they are willing to pay as well.
This can turn into a snowball effect and force the price higher. AMD shareholders are hoping it happens again.
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Photo: Courtesy AMD
