Take a look at the chart below which is of 3:06 PM EDT on 10/9/14. As you can see, AMD took a huge drop recently. In July of this year it was as high as 4.5 and has been bouncing all around this year. That volatility has made it a traders dream. However now due to the huge recent drop which may partly be due to the overall market at this time, it could be an opportunity for value investors as well as traders.
AMD with RSI
On the chart above it shows a 14 day RSI. Now you should employ many more technical analysis indicators however look at this Relative Strength Indicator. The RSI is definitely in a buy territory. We never, nor does anyone, suggest making a trading decision on one indicator alone. Now take a look at the chart below showing the OBV.
AMD with OBV
This chart goes back to the later months of 2012 up through the end of trading on 10/9/14. This indicator is the On Balance Volume. Looking at the current price and then going back to about October of 2013 when it was last at this price, although now it is slightly lower. But compare the On Balance Volume. It is not anywhere near as low as the past volume and the price is the same. In other words even though the price has dropped quickly the volume has not dropped significantly.
Recent News and Events
The Market as a whole is down, that can effect all stocks regardless of their strength. If there are those stocks that are on the fence it can effect them even more so. There was big news recently when the CEO is going to be replaced by the COO as reported by Barrons.
Disclaimer: As always do your own research before making a decisions to buy or sell a stock, and the writer of this article may be biased and own the stock in question, or be shorting it, or have options, who knows, just beware.