AMD Consolidates Ahead Of Earnings Print

Advanced Micro Devices (NASDAQ: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 (NASDAQ:FB) and Apple Inc (NASDAQ: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 (NASDAQ: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.