NVDA, INTC and AMD Forecast – Microchips Rally in the Premarket Hours of Monday

NVDA Technical Analysis

Nvidia has the look of a market that’s ready to go higher during pre-market trading on Monday, as we may be in the process of trying to form a little bit of a bottom. After all, we had sold off quite drastically, the 200-day EMA sits just above, so I would expect a bit of choppiness. Nonetheless, it looks like it’s going to be jumping about $2 right off the bat, so it’ll be interesting to see how this plays out. But this is a Wall Street darling, and there is still a lot of demand out there for these momentum stocks. Perhaps people are starting to dip their toes back into the water.

INTC Technical Analysis

Intel looks like it’s going to rise again during the pre-market trading hours, and it looks like it’s going to open up right around the 200 day EMA. This is a truly interesting stock because the recent management change has a lot of people optimistic, but it’s got a long way to go before profitability becomes a thing at Intel.

Nonetheless, I do think this is a market that, longer term traders are going to be paying close attention to. After all, we are in the midst of what some people would consider to be a massive accumulation phase. So, a break above the $28 level would really get this market moving to the top for a much bigger move. In fact, the measured move would be to about the $36 level.

AMD Technical Analysis

AMD looks like it’s going to open higher by about $3 as far as pre-market trading is concerned. That would put it in direct conflict with the 50 day EMA, but this is a market that looks like it’s trying to jump out of a major down trending channel. This typically leads to sideways action before moving to the upside. AMD will move right along with the other stocks of course though, so do keep that in mind.

But ultimately, I think you’ve got a situation where AMD may have finally gotten cheap enough from a historical standard for people to get interested in it. And if it were to repeat the previous performance, it could double from here. But obviously, that’s a longer term outlook. As long as we stay above the $95 level, there’s still a chance. But if we can break above the 50-day EMA and, more importantly, close above there on a daily chart, I think that’d be extraordinarily bullish.