{"id":10349,"date":"2022-07-21T19:26:53","date_gmt":"2022-07-22T00:26:53","guid":{"rendered":"http:\/\/blog.jlbn.net\/?p=10349"},"modified":"2022-07-21T19:26:54","modified_gmt":"2022-07-22T00:26:54","slug":"trading-nvidia-amd-and-intel-as-congress-votes-on-chips-act","status":"publish","type":"post","link":"http:\/\/blog.jlbn.net\/?p=10349","title":{"rendered":"Trading Nvidia, AMD and Intel as Congress Votes on Chips Act"},"content":{"rendered":"\n

The chip stocks are in focus amid the recent rally. Here’s how to trade AMD, Nvidia and Intel now.<\/em><\/strong><\/p>\n\n\n\n

Chip stocks like Nvidia\u00a0\u00a0(NVDA<\/a><\/strong>) –\u00a0Get NVIDIA Corporation Report<\/a>, Advanced Micro Devices\u00a0\u00a0(AMD<\/a><\/strong>) –\u00a0Get Advanced Micro Devices Inc. Report<\/a>, Intel\u00a0\u00a0(INTC<\/a><\/strong>) –\u00a0Get Intel Corporation Report<\/a>\u00a0and more are in focus on July 20.<\/p>\n\n\n\n

That\u2019s not only as these three stocks work on their sixth straight daily gain, but also as earnings start to roll in and as the Chips Act — formally the Creating Helpful Incentives for the Production of Semiconductors for America Act — is being voted on in Congress.<\/p>\n\n\n\n

Despite the selloff, earnings remain somewhat resilient. Taiwan Semi\u00a0\u00a0(TSM<\/a><\/strong>) –\u00a0Get Taiwan Semiconductor Manufacturing Company Ltd. Report<\/a>\u00a0reported a top- and bottom-line beat last week and\u00a0provided upbeat guidance<\/a>.<\/p>\n\n\n\n

The report from Taiwan Semi \u2014 the sector\u2019s largest company \u2014 should outweigh the commentary from ASML Holding NV  (ASML<\/a><\/strong>) – Get ASML Holding N.V. Report<\/a>, which said this morning that supply-chain disruptions and uncertainty forced it to reduce its guidance. That came, however, alongside a strong second quarter<\/a>.<\/p>\n\n\n\n

The semi stocks are also looking at a potential boost from Congress<\/a> as well.<\/p>\n\n\n\n

As reported earlier, the Chips for America, or Chips, Act cleared its first procedural hurdle by a 64-34 vote in the U.S. Senate late on Tuesday.<\/p>\n\n\n\n

If it passes, Intel, Micron  (MU<\/a><\/strong>) – Get Micron Technology Inc. Report<\/a> and others are reportedly set to benefit<\/a> from the legislation.<\/p>\n\n\n\n

Let\u2019s look at the charts.<\/p>\n\n\n\n

Trading Nvidia Stock<\/h2>\n\n\n\n

Last week all three stocks put in higher lows, a key bullish development. <\/p>\n\n\n\n

Nvidia has traded well lately, working on its 10th rally in the past 12 sessions.<\/p>\n\n\n\n

On Monday Nvidia was rejected by the 50-day moving average. On Tuesday, it rallied up to, but could not push through, the 10-week moving average. With today\u2019s action, Nvidia is pushing through both<\/em>measures, with traders now focusing on the gap-fill at $180.50.<\/p>\n\n\n\n

If it can push through this zone, the June high and resistance near $195 are in play. Above $200 and prior support between $208 to $210 is in play.<\/p>\n\n\n\n

On the downside, the bulls want to see support from the 50-day and 10-week moving averages, but they\u00a0need<\/em>\u00a0to see support from the 10-day and 21-day moving averages and preferably from $160.<\/p>\n\n\n\n

Trading AMD Stock<\/h2>\n\n\n\n

Up about 25% from this month\u2019s low, AMD stock has also traded quite well lately.<\/p>\n\n\n\n

But the shares are now coming into a key area on the chart, with the 10-week and 50-day moving averages in play. It\u2019s also trading up into wedge resistance (blue line), with the 50% retracement at $90.60.<\/p>\n\n\n\n

From here, the levels are very straightforward.<\/p>\n\n\n\n

On the upside, AMD stock needs to clear $90.60 to continue higher. If it can, the gap-fill level at $94.25 and the 61.8% retracement are in play up near $95. Above that puts the key $100 level in play, followed by the 78.6% retracement at $101.44.<\/p>\n\n\n\n

On the downside, $80 to $81 is key. A drop below that level puts it below support, as well as the 10-day and 21-day moving averages.<\/p>\n\n\n\n

Trading Intel Stock<\/h2>\n\n\n\n

Then there’s Intel. This stock has not traded all that well, but it ended up holding a key support level near $38. With the recent rebound, the shares are trying to push back to a big breakdown spot.<\/p>\n\n\n\n

For those interested in the \u201cbig picture setup\u201d for Intel, the monthly setup can be found here<\/a>.<\/p>\n\n\n\n

Amid the current rally, Intel stock is now rallying into the 50% retracement and 50-day moving average. It\u2019s also near the May low.<\/p>\n\n\n\n

If the stock pulls back, holding the 10-day is ideal, but holding $38 and the 21-day moving average is much more vital.<\/p>\n\n\n\n

On the upside, a continued rally puts the gap-fill level up near $42.60 in play. This level is the bottom of a key zone, which is highlighted on the chart between $42.50 and $44.\u00a0Let\u2019s see how Intel stock trades there — assuming it can get there.\u00a0<\/p>\n\n\n\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

The chip stocks are in focus amid the recent rally. Here’s how to trade AMD, Nvidia and Intel now. Chip<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[254,3421,3422],"tags":[3553,3595,888,3502,3501,3425],"_links":{"self":[{"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=\/wp\/v2\/posts\/10349"}],"collection":[{"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=10349"}],"version-history":[{"count":1,"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=\/wp\/v2\/posts\/10349\/revisions"}],"predecessor-version":[{"id":10350,"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=\/wp\/v2\/posts\/10349\/revisions\/10350"}],"wp:attachment":[{"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=10349"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=10349"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=10349"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}