AMD Inventory Worth Ranges to Watch After Put up-Earnings Plunge

Superior Micro Units (AMD) shares moved sharply decrease in prolonged buying and selling on Tuesday after the chipmaker reported third-quarter earnings that got here in beneath expectations and issued a light-weight present quarter income outlook, regardless of file knowledge heart income.

Throughout the firm’s convention name, CEO Lisa Su instructed analysts that the chipmaker now anticipates knowledge heart income to exceed $5 billion in 2024, up from her July forecast of $4.5 billion, Nevertheless, the inventory’s afterhours decline signifies buyers might have been searching for extra amid insatiable synthetic intelligence (AI) infrastructure demand. 

AMD shares have gained round 13% 12 months up to now as of Tuesday’s shut, underperforming the tech-heavy Nasdaq index’s return by about half over the identical interval. The inventory fell 7.6% to $153.57 in after-hours buying and selling Tuesday.

Under, we analyze the technicals on AMD’s weekly chart and level out vital post-earnings value ranges that different buyers could also be watching.

Descending Channel

After an inverted hammer marked AMD’s all-time excessive (ATH) in early March, the inventory has traded inside a textbook descending channel.

Extra just lately, the worth has rallied into the sample’s higher trendline, although decrease volumes recommend that bigger market members remained on the sidelines forward of the corporate’s quarterly outcomes.

Amid the inventory’s projected post-earnings sell-off, let’s take a look at key assist ranges which will come into play and likewise forecast a chart-based value goal to look at if the shares resume their longer-term uptrend.

Key Assist Ranges to Watch

The primary vital assist degree to observe sits round $162. Though the inventory sits poised to open beneath this space on Wednesday, it’s price watching if bulls make an try to defend a trendline linking the distinguished November 2021 peak and a spread of comparable buying and selling ranges throughout the descending channel.

A decisive breakdown beneath this degree might see the shares decline to the $132 space, a location the place buyers could search for shopping for alternatives round a sequence of costs located close to the June swing excessive and August swing low.

Additional promoting within the inventory opens the door for a fall to round $112, round 33% beneath Tuesday’s closing value, the place the shares discover a confluence of assist from the 200-week transferring common and a horizontal line stretching again to August 2021.

Longer-Time period Bullish Worth Goal

If AMD shares resume their longer-term uptrend, we will forecast a bullish value goal utilizing a bars sample, a way that makes use of historic tendencies on the chart to foretell future value strikes.

On this case, we take the inventory’s pattern greater from October 2023 to March this 12 months and reposition it from the early August low, which initiatives a value goal of round $275.

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