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Advanced Micro Devices (AMD) - Get Advanced Micro Devices, Inc. Report is down about 2% on Wednesday, pulling back after the chipmaker reported third-quarter earnings.

The action isn't all that surprising given the big rally we've seen in the stock from the October lows. From trough to its pre-earnings peak, AMD stock rallied more than 23%.

Other chip stocks, like Intel (INTC) - Get Intel Corporation Report and Nvidia,  (NVDA) - Get NVIDIA Corporation Report have also enjoyed big gains this month, while AMD's post-earnings action is similar to what we saw in Alphabet (GOOGL) - Get Alphabet Inc. Class A Report (GOOG) - Get Alphabet Inc. Class C Report a day ago.

While bulls would have obviously enjoyed a rallying stock price, perhaps they should look at Wednesday's pullback as an opportunity rather than a punishment. That's even after the company reported in-line earnings per share results and missed on revenue expectations.

Given AMD's rapid rise and recent pullback, Real Money selected the name as its Stock of the Day. Let's look at the charts.

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Earlier this month, AMD stock made an explosive move higher. The shares aggressively reclaimed the 20-day moving average while simultaneously breaking out of its falling wedge pattern (blue lines). In the following session, Advanced Micro Devices reclaimed its 50-day moving average.

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In the ensuing days, AMD struggled with but eventually reclaimed the $32 level, which has proved significant over the past five months. Now pulling back to this area, AMD's stock price is finding $32 as support. That's an important technical development for bulls.

If Advanced Micro Devices stock is healthy, it will maintain above its 78.6% retracement at $31.37 and its 20-day moving average at $31.28. These figures become even more important with equity markets hovering near all-time highs, while the Fed's interest rate decision is due Wednesday afternoon and the jobs report will be released Friday before the open.

Should AMD stock maintain above these marks after all these events, that's a good sign for bulls. Below the 20-day and the 50-day near $30.50 is on the table. Below that and the 200-day moving average is possible.

Above the 20-day moving average is constructive, while over $32 is bullish in my book. Over the latter and $34 is still in the realm of possibilities.

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