NVDA, INTC and AMD Forecast – Microchips a Touch Soft in Premarket on Tuesday

NVDA Technical Analysis

NVIDIA looks like it’s going to be a little softer on Tuesday than it was on Monday, but that’s not a huge surprise. We’ve seen a pretty significant bounce over the last 3 trading sessions, and of course, we are sitting right around the 50-day EMA. That’s not to say that I think the market’s going to fall significantly; it’s just that we are getting fairly close to the holidays, and liquidity will probably be a bit of a concern.

NVIDIA, of course, is the biggest name out there, and as it goes, generally speaking, so goes the stock market and vice versa. I look at this market as one that has a floor in it at the $170 level, which is also backed up by the recent announcement that NVIDIA is getting ready to send a certain amount of AI chips to China, which, of course, helps its bottom line as well. That is still pending approval.

INTEL Technical Analysis

Intel looks like it’s going to be basically flat to just a little bit softer on Tuesday based on pre-market trading, but this is a market that’s had a massive run-up since the middle of September. With money flowing into it from Apple and the US government, it makes a certain amount of sense that Intel has a bit of a floor in it. I do think it goes higher eventually, but I would anticipate that the next couple of days might be a little lackluster. I’d watch the $34 level, that should be a floor.

AMD Technical Analysis

Advanced Micro Devices looks like it is going to be just a touch softer as well, but it is in the middle of consolidation, and I look at the $200 level underneath as a major floor in the market. I think you’ve got a situation here where traders are just going to go back and forth until we get a catalyst to get moving. That catalyst probably doesn’t appear until after the holidays, but nonetheless, the most obvious direction here is upward, so if I had to place a trade, it would be a long position, not a short one. I do think that we will revisit $260 probably sometime in the middle to late January.

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