AMD stock chart: Can it benefit from Nvidia’s earnings report?
Advanced micro-systems (AMD) – Get Advanced Micro Devices, Inc. on May 23, the stock stumbled out of the gate and then turned positive.
The chipmaker’s stock recently tried to hold its own after a five-week slide. Amid this decline, the company announced impressive earnings and issued a strong guidance.
Although it has been trading lower for the past two weeks, it has only yielded 2%. Compared to the S&P 500 and Nasdaq, which fell 5.4% and 6.5% respectively during this period, AMD stock has performed quite well.
Now, this stock is back on the priority list of traders.
The bulls are generally trying to find their place in the market. If they do, AMD stock is likely to be a go-to name.
Second, Nvidia (NVDA) – Get the NVIDIA Corporation report will publish its results on Wednesday, May 25, after the close. If the company delivers upbeat results, that could also trigger AMD stock.
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When we measure AMD from the late 2021 high to the March 2020 covid lows, the 61.8% retracement comes into play near $85.50.
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This level served as support before, during and after the company released its results on May 3.
From there, the $100 level continues to weigh heavily. While once a vital support level, this area has clearly turned into resistance. This has been the case since April, when this level ultimately failed to support the stock price.
Now, with AMD shares trapped between $85 and $100, the declining 10-week moving average is also in play near resistance.
While the stock was able to recover this active resistance measure at times, it has not been able to close above it on a weekly basis since late March.
Before that, the bulls would need to go back to the end of 2021 to find the last time AMD closed above 10 weeks.
If AMD shares can find a way to clear $100, then last week’s high (and May’s high) at $104.22 is in play. area from $108 to $112. Within this area we find the 21-week and 50-week moving averages, as well as the 61.8% retracement of the current area.
On the downside, a break of $90 puts last week’s low in play near $88.25. Below that, the key $85 zone is in play.
If AMD’s stock loses $83 and cannot recoup it, we might be looking at a sharper drop to the $73-$75 area. But this is likely accompanied by a broader market decline.