NVDA, INTC and AMD Forecast – Microchip Stocks Struggle in Premarket

NVDA Technical Analysis

Nvidia has gapped a little bit lower during the trading session on Tuesday when we opened up premarket trading, and it looks as if we may have to drop toward the $180 level. The $180 level has been both support and resistance as of late, but this is a market that many people do not really know what to do with. After the Wednesday session, we are going to get the earnings report, so I would not read too much into the action in this particular stock. Nvidia is just waiting for that information. Nvidia pretty much drives the entire market these days, so everything is going to be waiting with bated breath.

INTC Technical Analysis

Intel looks like it is going to open down during the trading session, but there is a lot of support at a couple of different places. You can look at $33, you can look at $30, and if we filled the gap from the Apple announcement, we would be talking about $25. I think I am going to be waiting for a bounce and trying to play the right-hand side of the V with my stop loss below the bottom of it. That way, at least I am trying to go with the momentum. Intel has been a bit of a basket case for years, so we will see whether or not this is the real deal, but it is obviously much more bullish than it once was.

AMD Technical Analysis

AMD is going to open lower as well, and it looks like it might try to find a bit of support near the 50-day EMA, or maybe even higher than that. At this point, a buy-on-the-dip strategy is the most likely to work out. You need to see momentum come back into the stock before putting money into it, but this market has been very noisy as of late, although bullish in general. With this, I am a buyer of dips. I think eventually we will go higher. There is probably a big floor underneath, maybe near the $200 level, but we will have to wait and see. Earnings were reasonable for AMD, as you can see on the chart, but this is a general malaise. Do not be surprised if the Nvidia earnings at the end of the day on Wednesday influence AMD as well.

For a look at all of today’s economic events, check out our economic calendar.