Earnings studies from FAANG shares weighed on U.S. equities in the previous few days.
Will the earnings of Superior Micro Units (AMD) prolong the tech shares’ downtrends this week?
Right here’s a setup that I’m taking a look at:
Superior Micro Units (AMD): 1-hour
April was not a superb month for Superior Micro Units (AMD), which peaked at $124.00 and didn’t look again till patrons put up a struggle at $82.00.
Issues over larger inflation and rates of interest didn’t do the tech inventory any favors and that was earlier than different main U.S. tech firms like Amazon, Netflix, and Alphabet spooked the equities area additional with disappointing earnings numbers.
AMD bulls have an opportunity to purchase this week as the corporate prints its earnings studies for Q1 2022.
In the event you recall, AMD confirmed robust progress and earnings per share (EPS) ends in This autumn 2021 whereas rivals within the chip sector apprehensive about provide shortages and tighter margins.
It additionally helps that the corporate completed buying semiconductor firm Xilinx in February and might benefit from a much bigger portfolio.
Analysts see earnings at 91 cents per share, which might characterize a 75%-ish enchancment from final yr.
Higher-than-expected earnings numbers would entice bulls who’re already listening to Stochastic‘s oversold sign and a attainable development line assist on the 1-hour timeframe.
Relying on the momentum, AMD might 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, nevertheless, or if merchants proceed to avoid “dangerous” bets like equities forward of the Fed’s assertion, then AMD might break at present’s assist and drop beneath April’s lows.
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