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Trading Nvidia, AMD and Intel as Congress Votes on Chips Act

by WOOWinvest
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Trading Nvidia, AMD and Intel as Congress Votes on Chips Act


Nvidia and other chip stocks (NVDA) – Get NVIDIA Company ReportsAdvanced Micro Devices (AMD) – Get Advanced Micro Devices Inc. ReportIntel (INTC) – Get Intel Corporation Reports More to follow on July 20.

Not only was the three stocks up for the sixth day in a row, but as earnings started to roll in and Congress was voting on the Chips Act.

Despite the sell-off, earnings have remained somewhat resilient.TSMC (TSM) – Get TSMC Report Top and bottom line performance was reported last week with upbeat guidance.

TSMC — the industry’s biggest company — should report over comments from ASML Holding NV (ASML) – Get ASML Holdings NV Report, the company said this morning that supply chain disruptions and uncertainty forced it to lower its guidance. However, this was accompanied by a strong second quarter.

Semis are also looking for a potential boost from Congress.

As reported earlier, late Tuesday, the US Senate cleared the first procedural hurdle in a 64-34 vote.

If passed, Intel, Micron (MU) – Get Micron Technology Inc. Report Others will reportedly benefit from the legislation.

Let’s take a look at the graph.

Trade Nvidia stock

A daily chart of Nvidia stock.

All three stocks made higher lows last week, a key bullish development.

Nvidia has traded well recently, posting its 10th rally in the past 12 sessions.

On Monday, Nvidia was rejected by the 50-day moving average. On Tuesday, it bounced back to the 10-week moving average but failed to break above it. With today’s action, Nvidia is pushing both measures, and traders are now focused on filling the $180.50 gap.

If it can break out of this area, the June high and resistance near $195 will come into play. Previous support above $200 and between $208 and $210 is in play.

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On the downside, the bulls want to see support from the 50-day and 10-week moving averages, but they need to see support from the 10-day and 21-day moving averages, preferably at $160.

Trade AMD stock

A daily chart of AMD stock.

A daily chart of AMD stock.

AMD stock is up about 25% from this month’s lows and has been trading fairly well recently.

But shares are now entering a key area on the chart, where the 10-week and 50-day moving averages are in play. It is also trading up to the wedge resistance (blue line) with the 50% retracement at $90.60.

From here, the level is very simple.

On the upside, AMD stock needs to clear $90.60 to continue higher. If it can, the $94.25 gap filling level and 61.8% retracement level will rise near $95. Above this, the key $100 level comes into play, followed by the 78.6% retracement at $101.44.

On the downside, $80 to $81 is key. A break below this level puts it below support and the 10- and 21-day moving averages.

Trade Intel Stock

A daily chart of Intel stock.

A daily chart of Intel stock.

And then there’s Intel. The stock didn’t trade that well, but ended up holding key support around $38. With the recent rally, shares are trying to get back to a big crash point.

For those interested in Intel’s “big picture settings”, the monthly settings can be found here.

In the current rally, Intel stock is currently rallying towards the 50% retracement and the 50-day moving average. It is also near the lows in May.

A 10-day hold is ideal if the stock pulls back, but a hold of $38 and the 21-day moving average is more important.

On the upside, a sustained rally has taken the gap-filling level to near $42.60. This level is the bottom of the key area, highlighted on the chart between $42.50 and $44. Let’s see how Intel stock trades there — assuming it can get there.

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