Watch These AMD Stock Price Levels Following Earnings-Driven Surge

Advance Micro Devices (AMD) shares surged much than 9% successful premarket trading Wednesday aft nan chipmaker posted better-than-expected second 4th revenue and issued an upbeat income outlook for nan 2nd half, boosted by robust maturation successful its information halfway conception driven by artificial intelligence (AI) demand.

The post-earnings popular follows a play of heightened volatility successful nan stock, which has fallen astir 35% from its March 7 grounds close. The caller downturn stemmed from concerns astir nan company’s expertise to seizure a greater stock of nan booming AI silicon marketplace and caller broad-based trading crossed nan spot sector amid worries complete tightening export curbs pinch China.

Below, we return a elaborate look astatine AMD’s floor plan and usage technical analysis to place cardinal value levels of liking to investors.

Nearing Oversold Conditions

Since mounting a record high successful early March AMD shares person oscillated wrong a descending channel, a floor plan shape that indicates a downward inclination successful prices.

Following a rally to nan channel’s precocious trendline earlier this month, nan value has fallen astir 25% to waste and acquisition beneath some nan 50- and 200-day moving averages starring into nan chipmaker’s quarterly results.

However, volumes person remained beneath mean passim nan caller sell-off, while nan relative spot scale (RSI) parameter nears oversold levels, mounting nan banal up for a post-earnings bounce.

Key Resistance Levels Amid Earnings Surge

If bulls regain power of nan action station earnings, investors should oculus 3 important value levels wherever AMD shares could tally into overhead resistance.

The first sits astir $151, a level connected nan floor plan wherever short-term traders could lock successful profits adjacent a trendline connecting a bid of comparable value action betwixt January and July, presently sitting conscionable beneath nan rising 200-day moving average.

A breakout supra this area whitethorn substance a move to $170, wherever nan shares whitethorn brushwood guidance adjacent 2 periods of constrictive consolidation passim astir of February and successful nan 2nd half of May.

Further buying could spot a retest of nan $187 level, wherever nan banal would apt tally into trading unit adjacent nan July swing high, positioned conscionable supra nan descending channel’s precocious trendline and January peak.

Longer-Term Bullish Target

To forecast a longer-term upside target, investors tin usage a bars pattern. To do this, we return AMD’s trending move from precocious October to nan March precocious and position it from Tuesday’s low, which predicts a target of astir $305.

AMD shares were up 8.9% astatine $150.81 successful premarket trading astir two-and-a-half hours earlier Wednesday's opening bell.

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As of nan day this article was written, nan writer does not ain immoderate of nan supra securities.