Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

A Look At Advanced Micro Devices (AMD) As The Stock Piggybacks Nvidia On Post-Earnings Surge

Published 25/08/2022, 21:12
Updated 25/08/2022, 22:10
© Reuters A Look At Advanced Micro Devices (AMD) As The Stock Piggybacks Nvidia On Post-Earnings Surge

© Reuters A Look At Advanced Micro Devices (AMD) As The Stock Piggybacks Nvidia On Post-Earnings Surge

Advanced Micro Devices, Inc (NASDAQ: NASDAQ:AMD) was rallying about 5% higher at one point on Thursday, in tandem with NVIDIA Corporation (NSDAQ: NASDAQ:NVDA), which was spiking up about 3% on a positive reaction to its second-quarter earnings miss.

Nvidia reported earnings per share of 51 cents on revenues of $6.7 billion, which missed the consensus estimate for EPS of $1.25 on revenues of $8.1 billion. Nvidia traded lower in the premarket following the results but ran into a group of buyers when the market opened.

A slew of analysts weighed in on Nvidia on Thursday, all lowering their price targets. The new price targets range from $135 to $225, down from between $150 and $250 prior to Nivida’s second-quarter print.

Taking a position in a company through stock or options to play quarterly earnings is risky and can be akin to gambling. Stocks can soar on an earnings miss and fall on a quarterly beat.

Most retail traders have a bullish bias, however, and those who played Nvidia or AMD for a sympathy play may have booked profits on Thursday. The overall trend for both Nvidia and AMD is bearish and traders and investors will want to watch the stocks closely over the coming days to indicate whether Thursday’s jump suggests a larger reversal to the upside or if the bounce is merely a bullish move higher in the longer-term downtrend.

Want direct analysis? Find me in the BZ Pro lounge! Click here for a free trial.

The Advanced Micro Devices Chart: AMD began trading in a downtrend on Aug. 4, with the most recent lower low formed on Wednesday at $90.90 and the most recent confirmed lower high printed at the $101.07 mark on Aug. 18. On Thursday, AMD’s spike higher has so far failed to negate the downtrend and the stock may print a lower high under the $101 level over the coming days.

  • Bearish traders will be watching for AMD to print a bearish reversal candlestick, such as a doji or shooting star candlestick. If the stock closes the trading day near its high-of-day price, AMD will print a bullish Marubozu candlestick, which may indicate higher prices are in the cards before a potential reversal takes place.
  • Bullish traders want to see the higher prices bump AMD up above the most recent lower high, or for AMD to retrace and print a bullish reversal candlestick above the most recent lower low, which would also negate the downtrend.
  • AMD has resistance above at $99.82 and $106.99 and support below at $92.75 and $87.45.
See Also: Nvidia OEM Revenue Sinks 66% On Weak Crypto Mining Chip Sales

© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Read at Benzinga

Read the original article on Benzinga

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.