Shares of Advanced Micro Devices (AMD) - Get Advanced Micro Devices, Inc. Report  dropped like a rock after the company reported its fiscal second-quarter results. The stock closed lower by 10.1%, at $34.45.

The company reported non-GAAP earnings of 8 cents per share, which was in-line with analysts' expectations. Revenue fell 13.1% year-over-year to $1.53 billion, but squeaked past consensus estimates by $10 million.

Guidance is what's weighing on AMD stock the most, though.

While management's gross margin guidance of 43% topped Street expectations of 41.7%, their revenue range of $1.75 billion to $1.85 billion came up short of the $1.95 billion analysts were looking for.

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That said, the company still expects mid-single digit revenue growth for the full year, something that easily tops competitors like Nvidia (NVDA) - Get NVIDIA Corporation Report and Intel (INTC) - Get Intel Corporation (INTC) Report .

Advanced Micro Devices stock was lower by about 3% to 5% in post- and pre-market trading. However, those losses rapidly accelerated in the first few minutes of trading Wednesday, as AMD stock tumbled lower by more than 8%. It's since found its footing a bit, but it's still carrying notable losses on the day.

Let's take a closer look at the charts.

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Trading AMD Stock

Daily chart of AMD stock.

Wall Street analysts are largely unchanged in their view of AMD stock, with many maintaining their targets and ratings from their pre-earnings outlook.

For investors who believe in AMD's future, a quick 8% hit down to the 50-day moving average could be a great spot to initiate or add to their position. If they're wrong, traders can stop-out without putting too much risk on the line. If they're right and the 50-day holds as support, they could pocket a quick profit on a bounce.

The question now is, will the 50-day moving average hold?

With the Fed's interest rate decision coming in the afternoon, that very well could drive the market one way or the other, and thus, moving AMD stock too. But all else being equal, we need to see how it handles this key level.

Should it fail and AMD stock takes out its session lows currently at $30.69, the prior breakout level at $29 is on the table. Below that and the 38.2% retracement at $27.67 is next up.

If the 50-day moving average holds, we need to see AMD stock reclaim uptrend support near $31.50 to $31.75. If it does, the 20-day moving average currently at $32.77 is on the table and above that, $34.30 resistance is next.

However, short of some newfound bullish momentum, it's hard to imagine AMD stock rebounding up into stiff resistance without a catalyst. Particularly after an earnings report such as this. The bottom line? Watch the 50-day. 

This article is commentary by an independent contributor. At the time of publication, the author had no positions in the stocks mentioned.