Superior Micro Gadgets (AMD) shares gained floor in prolonged buying and selling on Tuesday after the chipmaker posted first-quarter earnings that surpassed Wall Street expectations.

Gross sales within the firm’s knowledge heart section surged 57% within the quarter, serving to to allay issues of a slowdown in AI spending amid uncertainty about what affect the Trump administration’s tariffs could have on international progress. Nevertheless, the chipmaker cautioned that its outcomes could be affected by prices of roughly $800 million associated to tightening export restrictions on sales of its chips to China.

By way of Tuesday’s shut, AMD shares had gained 18% because the begin of the 12 months and risen practically 30% from their April low, far outpacing the efficiency of the S&P 500 over these durations. The inventory rose 1.7% to $100.32 in after-hours buying and selling Tuesday.

Beneath, we take a better have a look at AMD’s chart and apply technical analysis to establish main worth ranges that traders will probably be watching.

Descending Channel in Focus

AMD shares have trended decrease inside a descending channel since October final 12 months, tagging the sample’s higher and decrease trendlines on a number of events since that point.

Extra lately, the inventory has rallied towards the channel’s higher trendline and 50-day moving average, two indicators that supplied important resistance on the chart in late March.

In the meantime, the relative strength index (RSI) has lately crossed again above the 50 threshold forward of the chipmaker’s earnings report back to sign enhancing worth momentum.

Let’s level out a number of main support and resistance ranges on AMD’s chart which will come into play.

Main Help Ranges to Watch

The primary decrease stage to observe sits round $93. This space on the chart might present assist close to the distinguished October 2023 low, which additionally intently aligns with a interval of trading exercise towards the top of final month.

A failure of bulls to defend this essential technical stage may see the shares drop to decrease assist at $78. Buyers might search buy-and-hold alternatives on this area close to the inventory’s bear trap April low.

Essential Resistance Ranges to Monitor

Upon an earnings-driven transfer greater, it’s price eyeing the essential $116 stage. The shares might face promoting stress on this space close to a horizontal line that connects the December 2023 retracement low with peaks that fashioned on the chart in February and March this 12 months. It’s price mentioning this stage additionally sits on the 38.2% Fibonacci retracement stage when making use of a grid from the October excessive to April low.

Lastly, shopping for above this stage may result in a retest of overhead resistance round $132. Buyers who’ve accumulated AMD shares at decrease costs might resolve to lock in profits on this area close to final 12 months’s notable August swing low and this 12 months’s early-January countertrend excessive.

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As of the date this text was written, the writer doesn’t personal any of the above securities.