Advanced Micro Devices: The Bears Are Trying, But…Advanced Micro Devices was the top-performing member of the S&P 500 in both 2018 and 2019. Its last earnings report on April 28 was very middle-of-the-road. Results beat, and then management tried to talk down demand. Other chips like Intel and Qualcomm have struck a similarly cautious tone.
However, investors know some positives lay in the future. They may see the bigger chip cycle (cloud, AI, 5G, mobile) resuming sooner rather than later, and not want to remain negative on a company that’s repeatedly shown leadership.
This sentiment may be evident on the chart because AMD has refused to make new lows after earnings.
The key level seems to be the April 21 close of $52.92. Remember that was a big negative session for the S&P 500, one day after oil went negative.
Buyers defended AMD during that volatile day. The stock actually had more volume on April 21 than yesterday, following quarterly results.
Let’s see if this price area continues to provide support. It also gives potential buyers a decent risk-management level in case the shares break to the downside.
Semiconductors
AMD - Reverse head and shoulders formationAMD is forming a reverse head and shoulders. If we can break the ATH resistance on good volume, AMD will probably keep rallying.
RSI has been trending higher, but it is not as high as it was in its past peak. (short-term bear).
OBV has been trending higher, and its current value is slightly higher than its previous peak (short-term bull).
Keeping on a watchlist.
XILINX #XLNXAfter brokeout the daily 50SMA pulled back and holded above. It has been for 4 days above 50SMA which is a good signal to be long.
ON Semiconductor $ONAnalysts expect that ON Semiconductor Corp will report earnings of $0.16 per share for the current fiscal quarter, $ON posted earnings per share of $0.43 in the same quarter last year, which suggests a negative year over year growth rate of 62.8%.
It is forming ugly double bottom if it breaks above $15.20 and gartley, bearish
MellanoxTechnologies $MLNX#MellanoxTechnologies is outperforming the sector and and looks like to continue its solid performance. It tries to break $120 again but #rsi is still weak.
South Korea (Kospi) Breaking DownI could add many charts right now detailing similar themes, but this one to me is extremely telling.. South Korea is sitting on the cusp of two 30+ year long trendlines it has not broken in quite some time. These are extremely important.
I wouldn't be fully surprised if we retest or don't break right away, but given the moves in global markets, it could just bust right through here and head down significantly. Watch for currency movements to be a big part of this. Semiconductor industry likely to get hit especially hard with this in mind.
Nvidia Perching on Big Outside CandleNvidia is one the biggest gainers in the S&P 500 over the past year, trailing only Advanced Micro Devices among the semiconductors. Now the coronavirus pullback may be providing an opportunity for momentum buyers.
NVDA's chart has a few interesting patterns.
First, it never closed below its 50-day simple moving average (SMA) amid last week's intense volatility. That places it among only a handful of stocks in the current market that remained above that level.
Second, it's held a rising trend line that began in August.
Third, NVDA formed a bullish engulfing candle on Friday. It's now holding support at the top of that candle.
Finally, stochastics are near oversold conditions. This oscillator has successfully marked turns for NVDA in the past.
The company's last earnings report on February 13 beat estimates across the board. Investors were especially impressed by NVDA's growth in AI/machine-learning chips. Analysts followed with a stream of positive notes, price target hikes and upgrades. The firms include Bernstein, RBC Capital, Evercore ISI, Cowen and Jefferies.
AMD - Have to be a buyer here, starting with the chip stocksBeginning to build lines in some names, AMD one of them. Solid bullish divergence and as this is a very high beta stock, any short term low in the markets will have the greatest impact here because correlations are tighter than I've seen. NASDAQ:AMD