AMD Inventory Worth Ranges to Watch After Submit-Earnings Plunge

Superior Micro Gadgets (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 middle income.

Through the firm’s convention name, CEO Lisa Su instructed analysts that the chipmaker now anticipates knowledge middle 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% yr 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 essential post-earnings worth 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 value has rallied into the sample’s higher trendline, although decrease volumes counsel that bigger market individuals remained on the sidelines forward of the corporate’s quarterly outcomes.

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

Key Assist Ranges to Watch

The primary essential assist degree to observe sits round $162. Though the inventory sits poised to open beneath this space on Wednesday, it’s value watching if bulls make an try to defend a trendline linking the outstanding November 2021 peak and a variety 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 might 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 worth, the place the shares discover a confluence of assist from the 200-week shifting 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 worth goal utilizing a bars sample, a way that makes use of historic developments on the chart to foretell future worth strikes.

On this case, we take the inventory’s development increased from October 2023 to March this yr and reposition it from the early August low, which tasks a worth 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.