How AMD Can Finally Close the Gap With Nvidia

[Trading With Larry Benedict]( How AMD Can Finally Close the Gap With Nvidia By Larry Benedict, editor, Trading With Larry Benedict Nvidia (NVDA) has captured most of the tech rally headlines. But another chipmaker also enjoyed some outsized gains… Advanced Micro Devices (AMD) rallied, gaining 141% from late October to its March 8 high. That’s the date that both NVDA and AMD peaked before rolling over and retracing lower… NVDA has since recovered most of its ground. But AMD was languishing about 30% below its March peak. Today, let’s check to see what it will take for AMD to rally from here… Recommended Link [This New Idea is Set to Shock the World]( [image]( PayPal was not a popular idea at first. In the late 1990s, when most people were still mailing checks, Elon Musk’s idea of making payments over the internet was unimaginable. Now, though, PayPal is a promising contender in the ever-competitive AI boom. It seems that everything Musk has done throughout his career sounded insane at first… Which is why it’s important that you pay attention to his [latest, strange invention.]( It’s an AI device that could be the most [powerful technology ever created.]( This new idea is set to shock the world once again – and this time, you don’t want to be a nonbeliever. [Click here to learn all the details.]( -- Bearish Sentiment After hitting its peak on March 8, AMD soon reversed. As the chart below shows, that coincided with the Relative Strength Index (RSI) forming an inverse “V.” The RSI fell sharply from overbought territory (upper gray dashed line). Then it dropped into the lower half of its range. Advanced Micro Devices (AMD) Source: eSignal [(Click here to expand image)]( The blue moving average convergence/divergence (MACD) line also crossed below the orange signal line. Both then tracked into their lower range. That’s bearish. Adding to the bearish sentiment, the 10-day MA (MA, red line) crossed back below the 50-day MA (blue line), with the 50-day MA also tracking lower. And in late April, the slightest earnings miss caused AMD to gap lower. Earnings per share beat estimates while revenue only just missed. So what should we look for next? Free Trading Resources Have you checked out Larry's free trading resources on his website? It contains a full trading glossary to help kickstart your trading career – at zero cost to you. Just [click here]( to check it out. Crossing the Zero Line In the chart you can see that the RSI has recently broken up through resistance inside the orange circle. Take another look… Advanced Micro Devices (AMD) Source: eSignal [(Click here to expand image)]( What happens next will be key… If the RSI can gain further traction, it will help convert AMD’s recent strength into a genuine up move. The longer the RSI can remain in positive territory, the bigger that move could be… The other thing to keep a close watch on is the MACD. As you can see, AMD’s recent move higher coincided with the MACD line crossing above the signal line, with both tracking higher. From here, the MACD crossing up through the zero (0.00) line and into its upper range would help AMD move higher. Longer term, we’d then look for the 10-day MA to cross back above the 50-day MA, with both MAs then tracking higher. That would give us further confirmation of an emerging up move. Regards, Larry Benedict Editor, Trading With Larry Benedict [The Opportunistic Trader]( The Opportunistic Trader 55 NE 5th Avenue, Delray Beach, FL 33483 [www.opportunistictrader.com]( To ensure our emails continue reaching your inbox, please [add our email address]( to your address book. This editorial email containing advertisements was sent to {EMAIL} because you subscribed to this service. To stop receiving these emails, click [here](. The Opportunistic Trader welcomes your feedback and questions. But please note: The law prohibits us from giving personalized advice. To contact Customer Service, call toll free Domestic/International: 1-888-208-6550, Mon–Fri, 9am–5pm ET, or email us [here](mailto:feedback@opportunistictrader.com). © 2024 Omnia Research, LLC. All rights reserved. Any reproduction, copying, or redistribution of our content, in whole or in part, is prohibited without written permission from Omnia Research, LLC. [Privacy Policy]( | [Terms of Use](