Tech Stocks Forecast – Rising Rates Pressure Oracle, AMD, and Intel

ORCL

Oracle looks like it is going to gap a little bit lower at the open on Monday as the higher interest rates in America are starting to drag down some of the tech names again. Ultimately, this is a market that has recently had a nice bounce. It broke above a potential resistance barrier in the form of $145. Now we’re testing to see if there is going to be support after that breakout. This could be an interesting day, but at this point in time, we are still in the proving phase of the potential recovery.

AMD

AMD looks like it’s going to gap down to right around the $490 level, which is also basically where the 50-day EMA is. While it’s not going to be a pretty opening, it is still very much in the midst of consolidation, so whether or not that changes anything will remain to be seen. The $450 level underneath offered support a couple of times in the past. One would assume there might be something going on there again. To the upside, the $520 level has been resistant over the last couple of days. We’ll see if that ends up mattering, but with higher rates, that’s part of your problem.

INTC

Intel is going to gap lower to kick off the trading session after announcing that it is issuing more shares, which has diluted the stock a little bit, but it is opening between the 50-day EMA and the 200-day EMA, an area that I personally watch a lot for potential squeezes. We’d been in an uptrend. This latest bounce was decent but really didn’t change anything. It just showed signs of life.

The question now will be whether or not the 200-day EMA can hold as support if we even get that low. That’s basically right around the $80 level.

This looks like a market that might need to sort itself out in the short term as we digest the dilution and see what happens with interest rates, because again, rising interest rates are not good for tech stocks.