AMD Consolidates Ahead Of Earnings Print

Advanced Micro Devices AMD will print its second-quarter 2021 earnings after the closing bell on Tuesday. The stock gapped up and rallied over 1% higher before entering a phase of consolidation on lower timeframes.

Unlike other big tech names, which have consistently reached new all-time highs such as Facebook Inc FB and Apple Inc AAPL in the second and third quarters, AMD hasn’t made it back to its Jan. 11 all-time high of $99.23. The semiconductor company has battled a global chip shortage investors worry may hamper its revenue down the line despite the company posting a massive beat when it printed its first-quarter results.

Sentiment may be set to change, however, if AMD can follow Intel Corporation INTC, which significantly beat expectations for the second quarter, and prove its growth strategy is stronger than any challenges it faces.

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The AMD Chart: AMD’s stock has rallied almost 12% over the past seven trading days after bouncing off a support level at $84.24. On Tuesday, when the stock was unable to get bullish follow-through on the gap up and break through a resistance level at $95, sellers came in and forced the stock to consolidate. In its consolidation, AMD’s stock fell, tested a support level near the $90 level and held above it.

Support at the $90 level coincides with the eight-day exponential moving average (EMA), which could help to keep AMD propped up over the range. AMD is also trading above the 21-day EMA with the eight-day EMA trending above the 21-day EMA which is bullish. The stock is trading up about 7% above the 200-day simple moving average (SMA) which indicates overall sentiment in AMD is bullish.

• Bulls want to see a bullish reaction to AMD’s earnings print and for large bullish volume to come in and push the stock up over resistance at the $95 mark. If it can regain the level as support, and get continued momentum, AMD could make a run back up toward its all-time high.
• Bears want to see a bearish reaction to earnings to drive AMD down under support at $90.19 and under the eight-day EMA. If AMD loses the two key levels, it could drop down to test a lower support level near $84 where the 200-day SMA is currently trending.

AMD Price Action: Shares of AMD were trading down 1.2% at $90.65.