Why This Chart Pattern Could Spell Lower Prices For This Chip Maker

Semiconductors have been a hot sector for much of this year as the global economy still struggles with the effects of a shortage in microchips. As demand continues to remain high for this sector and its products, we can look to this area of the market for some trading opportunity. However, despite this heightened demand, our stock in the spotlight today may have plans of its own.

While the market looks like it could push higher, Advanced Micro Devices (AMD) has formed a head & shoulders reversal pattern, while trading within and up-channel. Unless the stock can regain $93, lower prices should be expected.

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