NVDA, SCMI and AMD Forecast – Chip Stocks Somewhat Hesitant in the Early Hours on Tuesday

NVDA Technical Analysis

NVIDIA looks as if it is going to open a little bit positive during the trading session here on Tuesday in the pre-market, but really at this point in time, we are getting a little stretched and we are waiting on CPI numbers to come out of the United States. So, I think that’s something worth paying attention to as well. After all, this is a fairly important announcement due to the fact that the Federal Reserve is a bit of a mixed bag at the moment.

Some people think that they will cut rates at the end of the year. Some people are starting to question if they cut rates at all. So obviously that will have a major influence on stocks. If Nvidia does pull back, the $140 level followed by the $135 level, both should offer support. I am bullish on this market. I just recognize that we are a little stretched at the moment.

SMCI Technical Analysis

Super Micro Computer looks as if it is going to try to rally just a touch in the open here, but really at this point in time, this is a market that’s just in the midst of trying to form a bit of a base. And it looks like we are going to continue to watch the $50 level. If we can break above the $50 level, that could open up a much bigger move. Short-term pullbacks in the meantime will more likely than not end up being buying opportunities, with the 200-day EMA underneath offering support, followed by the crucial 50-day EMA after that.

AMD Technical Analysis

Advanced Micro Devices looks like it’s going to open the market on Tuesday, just a little bit lower than the closing on Monday. That is not a huge surprise. We actually closed right at a minor resistance barrier, and we are hanging around the crucial 200 day EMA. So, I would anticipate that there’s probably going to be some noise here anyway.

Regardless, you could make an argument for something akin to a bullish flag here. Clearly, we’ve seen quite a bit of momentum for AMD over the last several weeks and I think that might continue based on the volume that we saw during the Monday session. Ultimately, we could break towards the $145 level over the longer term. In the short term, pullbacks probably offer value that people were willing to take advantage of.

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