The Big 3: AMD, INTC, ARM

Marley Kayden (0:02)

Welcome back to Trading 360, I'm Marley Kayden. It's time for the big three. We've got three stocks and three charts for you today. CPU-related stocks rallying as the adoption of Meta's Muse AI agent has reinforced expectations for greater CPU demand. Rick Ducat joins me today to walk us through the charts today. Now, Rick, we've got AMD as our first chart today. I was just pulling them up in advance of the show, hitting a $1 trillion market cap today on this now five-day rally.

Rick Ducat (0:30)

Yeah. So AMD is one that we have seen showing some strength recently here as well, breaking into those new highs.

So what we have is a situation now where we had this previous peak here, about a couple of months ago or so. And really, it's quite a significant push up to the upside from these lows that we established all the way down here in the 170s or so. AMD is one that I've always found rather interesting too because for quite a while, it seemed like they were maybe not on par with NVIDIA in terms of their quality of graphics chip. But anyone who's like a computer video game player knows that they were coming quite close to being an acceptably good alternative to those high powered NVIDIA chips here. So now the change in the whole overall structure, the AI ecosystem has resulted in unprecedented demand once more for all of these names here. So we can see now as well that after a period of sideways range bound activity between these lows that we saw here and this more extreme high, we are starting to push above into those new 52 week highs here.

If we could pull up our first chart, we can see that now as well, kind of the way things compare between them and some of these other names in the field here, we have outpacing the SMH ETF, the tech sector as well, purple and teal here respectively. So if we could advance to the next chart in our grid here, we would be able to see that AMD, second place here out of some of these more specialized names here behind Intel which was for quite a while a laggard in the group here. So if we advanced once more to our first candle chart here, what would we would start to see a different take here on some of these situations that we saw our line charts are helpful here. They filter out some of the noise, but we can also see then now that we have our candles, the extreme highs and lows based on our wicks here. So in this case, we had a notable low point here that gives us our upward sloping blue trend line. We also had our downward sloping blue trend line here converging toward each other. Our breakout happened then to the upside. We had a rising wedge type shape here.

So now, typically, this is regarded as more of a bearish type of setup here, but we've had an explosive move to the upside here that has taken us above that old high. So you can see now, we opened up roughly at those old highs near 584 Now, we can see that some notable downside levels to watch out for include 560 based on the old high point that we saw here and 528, another old high and then a subsequent high from this range bound area. Then after a gap up, it was our low once again. So if we could move to our next chart, then what we would have next is our moving averages that we follow here. So here we have our moving averages in order, like kind of chronological order, fastest to slowest. Our dark blue five day EMA 55840 is where that one comes in. We below that if we were to break beyond our pattern here that we established if we were to push back within those confines and break downward. Our 21 day EMA and teal near 512 RSI also quite interesting because what we have now is a upside breakout into the 70 threshold, the overbought area typically regarded as a sign of further strength to come in a trending market here. So a big push to the upside, a break above old highs and a push into the overbought area on the RSI is quite an interesting setup for the bullish crowd here. So if we could advance once more to our next chart here, we can see that our volume profile shows that we have some pockets of trading activity that stand out. We had this small area here before we had our push to the upside between 330 to 355, but more recently much of our activity has been here, 472 to 528 One final chart to think about, our expected move we have coming up for our options market projections here, October 16th, plus or minus 12.3 percent, our yellow box here, suggests that there could be significant new highs based on options market projections here.