AMD Stock Nears Oversold Territory; Tesla Tests Key Trendline

Meanwhile, Macy's just hit a fresh low after a bearish note from Citi

Oct 30, 2017 at 9:42 AM
facebook X logo linkedin

Analysts are weighing in on semiconductor stock Advanced Micro Devices, Inc. (NASDAQ:AMD), retailer Macy's Inc (NYSE:M), and electric car concern Tesla Inc (NASDAQ:TSLA). Here's a quick roundup of today's bearish brokerage notes on AMD, M, TSLA.

AMD Stock Nears Oversold Territory After MS Downgrade

AMD stock is down 4.8% at $11.26 this morning, after Morgan Stanley lowered its rating to "underweight" from "equal weight," and cut its price target to $8 from $11. Just last week shares of the chipmaker took a dive post-earnings, falling below the formerly supportive 200-day moving average. Advanced Micro Devices is now pacing for its lowest close since early June, and is nearing oversold territory. As of Friday's close, AMD had a 14-day Relative Strength Index (RSI) of 32, so a short-term bounce could be on the horizon.

Citigroup Downgrades Macy's on Dividend Fears

Citigroup this morning downgraded Macy's stock to "sell" from "neutral," and lowered its price target to $16 from $21. The brokerage firm expects the struggling retailer to cut its dividend in order to pay down debt; as it stands now, the security has a dividend yield of 7.7%. In today's trading, M shares are down 2.1% at $19.27 -- a fresh seven-year low -- to bring their year-to-date deficit to 46.5%. In the meantime, short sellers continue to flock to the equity. In the last reporting period alone, short interest on Macy's jumped 22.5%.

Tesla Stock Tries to Hold 200-Day After UBS Reiteration

Shares of Tesla are down 0.3% at $321.98, after UBS reiterated its "sell" rating on the stock and its $185 price target. Still, TSLA has so far held its position atop the 200-day moving average, a trendline it hasn't closed below since December. But short-term options traders are either expecting a pullback or bracing for one, based on the stock's Schaeffer's put/call open interest ratio (SOIR) of 1.49. This reading ranks in the 70th annual percentile, meaning options traders targeting contracts that expire within three months are more put-skewed than normal.


Unlock Weekend Profits with Chris Prybal's Favorite Strategy Up +487.5% in 2024

With the markets going left, right, and sideways, you need to have a plan now more than ever. 

Expert Trader Chris Prybal is no stranger to volatility, and has mastered finding big stock rallies while other traders aren't looking over the weekend. Rallies that produced gains like +207% on RTX calls, +236% on MARA calls, and +238% on NET calls.

A few simple moves on Sunday at 7pm could be the “Secret Sauce” your portfolio needs to not just stay afloat, but make unprecedented gains in this turbulent market.

Don’t sit on the sidelines, beat the market with Chris Prybal's strategy. Join him now!