AMD technicals show strength via breakout to new highs and overbought RSI; setup favors bulls.

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. 5-day rally.

Yeah. So AMD is one that uh we have seen uh showing some strength recently here as well breaking into those new highs. Uh so uh what we have is a situation now where we had this previous peak here uh about you know a couple months ago or so.

Uh 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.

Uh AMD is one that I've always found rather interesting, too, because for quite a while it seemed like they were uh 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 to being an acceptably uh good alternative to those high-powered Nvidia chips here.

So now the change in the whole overall structure the AI ecosystem has resulted in uh you know unprecedented demand once more for all of these names here.

So uh we can see now as well that after a period of sideways rangebound activity between uh uh these lows that we saw here and this more extreme high, we are starting to push above into those new 52- week highs here.

Um if we could pull up our first chart, we can see that now as well um you know kind of the the way things compare between uh them and some of these other names in the field here.

So um if we could advance to the next uh 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 uh behind Intel which was for quite a while a lagard in the group here.

So if we advanced once more to our first candle chart here uh what would we would uh start to see a different take here on some of these uh these uh uh uh situations that we saw are 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.

Uh 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.

Uh so now uh typically this is regarded as more of a bearish type of setup here. 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 uh 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 rangebound area. Then after a gap up it was our low once again.

So if we could move to our next chart then uh 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 5-day EMA 55840 is where that one comes in. We below that if we were to break beyond our our pattern here that we established if we were to push back within those confines and break downward our 21day EMA and teal near 512.

RSI also quite interesting because what we have now is a uh 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 uh 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 uh uh coming up for uh our our options market projections here projections here uh October 16th uh plus or minus 12.3% our yellow box here suggests that there could be significant new highs based on options market projections here

yeah interesting you know to talk about AMD a direct competitor to Nvidia you showed it there on that first chart uh and as we look at it you know it feels significant obviously for AMD to have hit this $1 trillion market cap app, but Nvidia, of course, worth $5.4 trillion right now when you look at them side by side.

Many of these uh chips if we could go to our next chart here. Um many of these chips uh that we talk about Nvidia, AMD, Marll, etc. They're fabulous chip makers, meaning they don't have their own fabrication facilities here.

So, uh, they often outsource these chips to a company like Taiwan Semiconductor to actually make them. They just make the designs here. Something that a finer point that maybe is not completely apparent right away.

So, it's funny to me because Nvidia, AMD, these are names many of us are very familiar with if you're either part of the stock market or part of uh, you know, this computer community uh, who's interested in this kind of thing.

So next chart that we can look at now uh kind of puts ARM into the mix of some of these uh semiconductor groups here. So ARM we can see kind of in the middle here. Marll and AMD outpacing them.

Uh Nvidia, Qualcomm, Broadcom, those are the ones that ARM is kind of more similar to.

Uh and we've got AMD hitting that trillion dollar market cap for the first time heading for a record close if it can hold on to it up close to 10%.