2 Semiconductor Stocks Hanging Near Support Levels

2 Semiconductor Stocks Hanging Near Support Levels

Advanced Micro Devices Inc. (Nasdaq: AMD) and NVIDIA Corp. (Nasdaq: NVDA) are two popular semiconductor stocks that moved higher Friday.

The companies are most likely moving up after Intel Corporation (Nasdaq: INTC) reported a drop in data center revenue, which has led to concerns the company may be losing market share to these two competitors.

Below is a technical look at the charts.

(Click on image to enlarge)

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AMD Daily Chart Analysis

  • The AMD chart shows that the stock looks to be forming into what technical traders may call an ascending triangle pattern.
  • The stock recently crossed above the 50-day moving average (green) and the 200-day moving average (blue), indicating sentiment is turning bullish in the stock.
  • These moving averages may hold as support in the future.

Key Levels To Watch

  • The stock has been building higher lows throughout the year into an ascending triangle pattern.
  • The ascending triangle shows a flat top resistance near the $100 level as this is a price level where sellers have always previously been able to overpower the buyers.
  • A break above flat top resistance with consolidation gives the stock a chance to push higher.

A break below the higher lows may cause the overall trend to change.

(Click on image to enlarge)

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Nvidia Daily Chart Analysis

  • The stock is trading above both the 50-day moving average (green) and the 200-day moving average (blue), indicating bullish sentiment in the stock throughout the past year.
  • These moving averages may hold as support in the future.

Key Levels To Watch

  • The $600 level previously held as resistance on the chart before breaking out, the stock needs to consolidate above this area to see another potential push upwards.
  • The stock is now looking to hold this $600 level as support.
  • The $475 level previously held as support and potentially will again in the future if the stock is unable to hold above the $600 level.
  • The stock is in a channel between these two price levels and would need to cross one to possibly see a more powerful move.

Disclaimer: © 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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