Earnings stories from FAANG shares weighed on U.S. equities in the previous couple of days.
Will the earnings of Superior Micro Gadgets (AMD) prolong the tech shares’ downtrends this week?
Right here’s a setup that I’m taking a look at:
Superior Micro Gadgets (AMD): 1-hour
April was not a great month for Superior Micro Gadgets (AMD), which peaked at $124.00 and didn’t look again till patrons put up a combat at $82.00.
Issues over increased inflation and rates of interest didn’t do the tech inventory any favors and that was earlier than different main U.S. tech corporations like Amazon, Netflix, and Alphabet spooked the equities house additional with disappointing earnings numbers.
AMD bulls have an opportunity to purchase this week as the corporate prints its earnings stories for Q1 2022.
If you happen to recall, AMD confirmed sturdy progress and earnings per share (EPS) ends in This fall 2021 whereas rivals within the chip sector fearful about provide shortages and tighter margins.
It additionally helps that the corporate completed buying semiconductor firm Xilinx in February and might make the most of a much bigger portfolio.
Analysts see earnings at 91 cents per share, which might symbolize a 75%-ish enchancment from final 12 months.
Higher-than-expected earnings numbers would appeal to bulls who’re already listening to Stochastic‘s oversold sign and a potential development line help on the 1-hour time-frame.
Relying on the momentum, AMD may hit the $90.50 ranges close to the 1-hour chart’s 100 SMA and development line resistance and even break its weeks-long downtrend.
If tomorrow’s numbers disappoint, nonetheless, or if merchants proceed to keep away from “dangerous” bets like equities forward of the Fed’s assertion, then AMD may break immediately’s help and drop under April’s lows.
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