{"id":21812,"date":"2024-05-22T07:30:51","date_gmt":"2024-05-22T11:30:51","guid":{"rendered":"https:\/\/www.jeffclarktrader.com\/?p=21812"},"modified":"2024-05-22T07:30:51","modified_gmt":"2024-05-22T11:30:51","slug":"how-amd-can-finally-close-the-gap-with-nvidia","status":"publish","type":"post","link":"https:\/\/jeffclarktrader.com\/market-minute\/how-amd-can-finally-close-the-gap-with-nvidia\/","title":{"rendered":"How AMD Can Finally Close the Gap With Nvidia"},"content":{"rendered":"

Managing Editor’s Note:<\/strong> Today, we’re handing the reins to longtime colleague and market wizard, Larry Benedict.<\/p>\n

As a legendary hedge fund manager, Larry focuses on finding winning trades in any market. And today he’s sharing his strategy to play this current tech rally.<\/p>\n

Here are Larry’s insights on what’s in store for tech…<\/p>\n

\n

Nvidia (NVDA) has captured most of the tech rally headlines. But another chipmaker also enjoyed some outsized gains…<\/p>\n

Advanced Micro Devices (AMD) rallied, gaining 141% from late October to its March 8 high.<\/p>\n

That’s the date that both NVDA and AMD peaked before rolling over and retracing lower…<\/p>\n

NVDA has since recovered most of its ground. But AMD was languishing about 30% below its March peak.<\/p>\n

Today, let’s check to see what it will take for AMD to rally from here…<\/p>\n

Bearish Sentiment<\/h2>\n

After hitting its peak on March 8, AMD soon reversed.<\/p>\n

As the chart below shows, that coincided with the Relative Strength Index (RSI) forming an inverse “V.”<\/p>\n

The RSI fell sharply from overbought territory (upper gray dashed line). Then it dropped into the lower half of its range.<\/p>\n

<\/p>\n

Advanced Micro Devices (AMD)<\/strong><\/p>\n

\"Image\"<\/p>\n

Source: eSignal<\/em><\/p>\n

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.<\/p>\n

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.<\/p>\n

And in late April, the slightest earnings miss caused AMD to gap lower. Earnings per share beat estimates while revenue only just missed.<\/p>\n

So what should we look for next?<\/p>\n

<\/p>\n

\n
\n

Free Trading Resources<\/strong><\/p>\n

Have you checked out Larry’s free trading resources on his website? It contains a full trading glossary to help kickstart your trading career \u2013 at zero cost to you. Just click here<\/a> to check it out.<\/p>\n<\/p><\/div>\n<\/div>\n

<\/p>\n

Crossing the Zero Line<\/h2>\n

In the chart you can see that the RSI has recently broken up through resistance inside the orange circle.<\/p>\n

Take another look…<\/p>\n

<\/p>\n

Advanced Micro Devices (AMD)<\/strong><\/p>\n

\"Image\"<\/p>\n

Source: eSignal<\/em><\/p>\n

What happens next will be key…<\/p>\n

If the RSI can gain further traction, it will help convert AMD’s recent strength into a genuine up move.<\/p>\n

The longer the RSI can remain in positive territory, the bigger that move could be…<\/p>\n

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.<\/p>\n

From here, the MACD crossing up through the zero (0.00) line and into its upper range would help AMD move higher.<\/p>\n

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.<\/p>\n

Regards,<\/p>\n

Larry Benedict
\nEditor, Trading With Larry Benedict<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

Today, let\u2019s check to see what it will take for AMD to rally from here\u2026<\/p>\n","protected":false},"author":55,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"ep_exclude_from_search":false,"service":"","footnotes":""},"categories":[1],"tags":[],"publication":[10],"person":[58],"newsletter-type":[],"ticker":[],"class_list":["post-21812","post","type-post","status-publish","format-standard","hentry","category-market-minute","publication-market-minute","person-larry-benedict"],"acf":[],"_links":{"self":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/21812","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/users\/55"}],"replies":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/comments?post=21812"}],"version-history":[{"count":0,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/21812\/revisions"}],"wp:attachment":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/media?parent=21812"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/categories?post=21812"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/tags?post=21812"},{"taxonomy":"publication","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/publication?post=21812"},{"taxonomy":"person","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/person?post=21812"},{"taxonomy":"newsletter-type","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/newsletter-type?post=21812"},{"taxonomy":"ticker","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/ticker?post=21812"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}