Advance Micro Devices (AMD) shares surged more than 9% in premarket trading Wednesday after the chipmaker posted better-than-expected 澳洲幸运5开奖号码历史查询:second quarter revenue and issued an upbeat sales outlook for the second half, boosted by robust growth in its data center segment driven by 澳洲幸运5开奖号码历史查询:artificial intelligence (AI) demand.

The post-earnings pop follows a period of heightened 澳洲幸运5开奖号码历史查询:volatility in the stock, which has fallen around 35% from its March 7 record close. The recent downturn stemmed from concerns about the company’s ability to capture a greater share of the booming AI silicon market and recent 澳洲幸运5开奖号码历♐史查询:broad-based selling across t♌he chip sector amid worries ov🅺er tightening export curbs with China.

Below, we take a detailed look at AMD’s chart and use 澳洲幸运5开奖号码历史查询:technical analysis to identify key price 🥃levels of inte꧙rest to investors.

Nearing Oversold Conditions

Since setting a 澳洲幸运5开奖号码历史查询:record high in early March AMD shares have oscillated within a 澳洲幸运5开奖号码历史查询:descending channel, a chart 𒁃pattern that indicates a downward trend in prices.

Following a rally to the channel’s upper trendline earlier this month, the price has fallen around 25% to trade below both the 50- and 200-day 澳洲幸运5开奖号码历史查询:moving averages leading into the chipmaker’s quarterly results.

However, volumes have remained below average throughout the recent sell-off, while the 澳洲幸运5开奖号码历史查询:relative strength index (RSI) indicator nears oversold leve෴ls, setting 🔴the stock up for a post-earnings bounce.

Key Resistance Levels Amid Earnings Surge

If bulls regain control of the action post earnings, investors should eye three important price levels where AMD shares could run into overhead 澳洲幸运5开奖号码历史查询:resistance.

The first sits around $151, a level on the chart where short-term traders could 澳洲幸运5开奖号码历史查询:lock in profits near a 澳洲幸运5开奖号码历史查询:trendline connecting a series of comparable price action between January and July, currently sitting ♔just below the rising 200-day moving average.

A breakout above this area may fuel a move to $170, where the shares may encounter resistance near two periods of narrow 澳洲幸运5开奖号码历史查询:consolidation throughout most of February and in th▨e second half of May.

Further buying could see a retest of the $187 level, where the stock would likely run into selling pressure near the July 澳洲幸运5开奖号码历史查询:swing high, positioned just above the descending channel’s upper trendline a꧙nd January peak.

Longer-Term Bullish Target

To forecast a longer-term upside target, investors can use a bars pattern. To do this, we take AMD’s trending move from late October to the March high and position it from Tuesday’s low, which predicts a target of 🎐around $305.

AMD shares were up 8.9% at $150.81 in premarket trading about two-and-a-half hours before Wednesday's opening bell.

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