ADVANCED MICRO DEVICES INC. - AMD looking healthy despite expected decline in earnings - 05/01/2023 (GMT)

Shares in Advanced Micro Devices, Inc. (symbol ‘AMD’) performed really well in the first quarter of the year and managed to make gains of almost 30% on its share price.The company is expected to report its earnings for the fiscal quarter ending March 2023 on Tuesday 2nd of May, after market close. The consensus EPS is $0,42 compared to the result for the same quarter last year of $1,02.  ‘ With a current ratio ( ability to repay the short term liabilities with the current assets in possession) of over 200% and a strong balance sheet where assets outweigh the liabilities on a ratio of 3:1 the company is looking to be financially healthy. This is music to the ears of long term investors even if the EPS is declining for now. ‘’ said Antreas Themistokleous, an analyst at Exness.  On the technical side the price is trading in a slightly declining momentum in the last month but still in profit compared to the beginning of the quarter. Currently is trading on a very strong technical support area which consists of the 38.2% of the daily Fibonacci retracement level, the lower band of the Bollinger bands and also just below the 50 SMA.    
  Although the short term momentum is bearish, the overall trend is still bullish and this is also indicated from the 50 SMA still trading well above the 100 SMA. At the same time the Stochastic oscillator is recording extreme oversold levels further supporting the narrative of a continuation to the upside in the short to medium outlook.