Watch These AMD Inventory Value Ranges as Chipmaker’s Knowledge Heart Gross sales Drive Earnings Beat

Superior Micro Units (AMD) shares gained floor in prolonged buying and selling on Tuesday after the chipmaker posted first-quarter earnings that surpassed Wall Road expectations.

Gross sales within the firm’s knowledge heart section surged 57% within the quarter, serving to to allay considerations of a slowdown in AI spending amid uncertainty about what affect the Trump administration’s tariffs can have on international development. Nonetheless, the chipmaker cautioned that its outcomes could be affected by expenses of roughly $800 million associated to tightening export restrictions on gross sales of its chips to China.

By way of Tuesday’s shut, AMD shares had gained 18% because the begin of the 12 months and risen practically 30% from their April low, far outpacing the efficiency of the S&P 500 over these intervals. The inventory rose 1.7% to $100.32 in after-hours buying and selling Tuesday.

Beneath, we take a more in-depth take a look at AMD’s chart and apply technical evaluation to determine main worth ranges that buyers will probably be watching.

Descending Channel in Focus

AMD shares have trended decrease inside a descending channel since October final 12 months, tagging the sample’s higher and decrease trendlines on a number of events since that point.

Extra lately, the inventory has rallied towards the channel’s higher trendline and 50-day shifting common, two indicators that supplied vital resistance on the chart in late March.

In the meantime, the relative energy index (RSI) has lately crossed again above the 50 threshold forward of the chipmaker’s earnings report back to sign bettering worth momentum.

Let’s level out a number of main assist and resistance ranges on AMD’s chart which will come into play.

Main Assist Ranges to Watch

The primary decrease degree to observe sits round $93. This space on the chart might present assist close to the outstanding October 2023 low, which additionally intently aligns with a interval of buying and selling exercise towards the tip of final month.

A failure of bulls to defend this essential technical degree might see the shares drop to decrease assist at $78. Traders might search buy-and-hold alternatives on this area close to the inventory’s bear lure April low.

Essential Resistance Ranges to Monitor

Upon an earnings-driven transfer larger, it’s value eyeing the essential $116 degree. The shares might face promoting strain on this space close to a horizontal line that connects the December 2023 retracement low with peaks that shaped on the chart in February and March this 12 months. It’s value mentioning this degree additionally sits on the 38.2% Fibonacci retracement degree when making use of a grid from the October excessive to April low.

Lastly, shopping for above this degree might result in a retest of overhead resistance round $132. Traders who’ve amassed AMD shares at decrease costs might determine to lock in earnings on this area close to final 12 months’s notable August swing low and this 12 months’s early-January countertrend excessive.

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As of the date this text was written, the writer doesn’t personal any of the above securities.