NVDA, AMD and INTC Forecasts – Microchips Look Ripe for Pullback

NVDA Technical Analysis

NVIDIA has the look of a market that is going to give back some of the gains early on Tuesday, which makes sense considering that the markets are having to deal with the Middle East and a lot of the concerns about just risk appetite in general.

The market has shot straight up in the air and now I think it has to give back a little bit in order to offer value. That value would get bought into pretty quickly, as NVIDIA, of course, is a major component of the artificial intelligence trade, which has been on fire as of late. A little bit of a pullback I think is healthy.

AMD Technical Analysis

Advanced Micro Devices also looks like they are going to pull back a bit. At this point, a pullback to the $400 level would simply be testing the top of the gap from several sessions ago. In fact, we could drop all the way back down to the $370 level.

Ultimately, we are looking at the market through the prism of trying to find some type of value and taking advantage of that value is exactly how I plan on trading this market. I do not want to chase AMD all the way up here, and quite frankly, the overextension probably invites a little bit of profit taking anyway, so maybe being patient for a few days might help you pick up shares at a better price.

INTC Technical Analysis

Intel looks like it is overdue, and also looks like it is due to a pretty significant pullback. I’ll be watching the $100 level if it really starts to accelerate to the downside for a potential value play.

Intel has been on fire as well but by forming a hanging man and looking like we’re going to open below it, that does signify a topping pattern at least for the time being. I don’t necessarily want to short this market, although I suppose if you’re nimble enough, you could, but the reality is that there is probably a better price to be had if you’re patient enough to take advantage of it.

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