NVDA, INTC and AMD Forecasts – Microchips Rallying Early on Monday

NVDA Technical Analysis

Nvidia looks like it is going to jump to kick off the trading session on Monday, as comments from President Trump right at the Asian open have suggested that the peace talks with the Iranians continue, and that, of course, has cooled off the bond markets just a bit.

These microchip stocks, of course, are very sensitive because they are pretty far out on the risk appetite spectrum, but having said that, I don’t know that this is a complete turnaround.

We are at the bottom of a larger consolidation area so yes, it would make a certain amount of sense that we bounce from here, but I would be a little bit more comfortable for more of a swing trade if we can recapture the 200-day EMA currently at the $173.75 level.

Intel Technical Analysis

Intel might be an easier trade due to the fact that it is sitting right on support and has bounced in pre-market trading. The $47.50 level above could be your target. The 50-day EMA is right in the middle of this range as well so it does make a certain amount of sense to see continued consolidation in this environment.

I have no interest in shorting this market, but if we were to break down below the $42 level, it’s possible that Intel could go looking at the 200-day EMA. All things being equal, keep in mind that the next earnings call isn’t until April 26, so that is not part of the equation right now.

AMD Technical Analysis

Advanced Micro Devices looks like they are going to jump right away and from significant support, so it makes perfect sense. With this being the case, I do anticipate that eventually this market could go looking to the $220 level.

The question is, can it continue to go higher from there and fill the gap right around $237? That’s my thesis. We are holding the 200-day EMA. That is a good sign, but expect a lot of choppy volatility, and of course, accept the fact that, unfortunately, random tweets will be the order of the day that drives the market. The next headline coming out of Tehran or Washington D.C. could throw the markets into disarray in either direction.