Is Tesla, AMD Stock a Buying Opportunity After Massive Declines?
The Tesla stock has lost around a third of its value, while the AMD stock has lost half the value, but this might be a good opportunity to go long and buy some shares.
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Tesla had a remarkable surge in 2024, gaining over 200% in the fourth quarter alone and more than 300% since its April dip. However, after peaking at $488 in December and forming two doji candlesticks—typically a bearish reversal signal—the stock has been on a steady decline. Since mid-December, Tesla has lost approximately 30% of its value, reaching a low of $322 earlier this month.
Tesla’s Chart Weekly – Will We See A Bounce off the 20 SMA?
Despite the drop, the stock found support at the 200-week SMA and rebounded slightly, forming a pin candlestick two weeks ago, which often signals a potential bullish reversal. However, last week’s bearish close suggests that upward momentum has yet to take hold. The price remains above the 20-week SMA, which could serve as another key support level. If Tesla stabilizes at these levels, it could present a strong buying opportunity for long-term investors.
AMD’s Struggles and Potential for Recovery
AMD’s stock performance has been even weaker. After surging 250% from October 2023 to March 2024, AMD shares plummeted as the company lost ground to Nvidia in the artificial intelligence sector. In March last year, AMD stock reached a peak of $227.08 before rapidly declining, breaking below most moving averages with little support. By early February, the price had fallen to $106, though the 200-SMA provided some stability. Despite a minor bounce, AMD remains below key moving averages, indicating that the stock has yet to regain strong bullish momentum.
Investors are now closely watching AMD’s upcoming earnings report, hoping for positive results and strong forward guidance for 2025. The company’s ability to compete with Nvidia and capitalize on AI-driven growth will be critical. While AMD’s sharp decline may present a tempting buying opportunity, investors should wait for the earnings report before making any major decisions.
With both Tesla and AMD trading significantly below their highs, these stocks could offer attractive entry points for investors looking for long-term growth. However, market sentiment and upcoming earnings will be key in determining whether these stocks can reverse their recent downtrends.
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