2 Semiconductor Stocks Hanging Near Support Levels

Advanced Micro Devices Inc. AMD and NVIDIA Corp. NVDA are two popular semiconductor stocks moving higher Friday.

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

See Also: 5 Intel Stock Analysts On Chipmaker's Q1 Results, Foundry Strategy, Investments

Below is a technical look at the charts.

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.

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.