NVDA, SMCI and INTC Forecast – Chips Look a Bit Sluggish

NVDA Technical Analysis

Nvidia has the look of a market that is in the midst of recovering as we are going to open the session higher based on pre-market trading on Wednesday.

That being said, we are still worried about the 200-day EMA just above, and that of course will have its influence, and you need to be aware of the fact that it could cause a little bit of noise. If we can break above the 200-day EMA though, it’s very likely that the market could find itself reaching towards the 50-day EMA after that, near the $131 level. On the other hand, if we turn around and break down below the $110 level, then I think we’ve got some issues.

SMCI Technical Analysis

Super Micro Computer looks like it’s going to open the session a little higher as well, as we are dancing around the crucial 50-day EMA in this market. If we can break above there, then the 200-day EMA comes into the picture just underneath the $50 level. The $50 level, of course, is a large round psychologically significant figure that a lot of people will be paying attention to. Anything beyond $50 opens up a little bit of FOMO. This is a market that will continue to be very noisy, so be cautious with your position size and recognize that we are very volatile.

INTC Technical Analysis

Intel looks like it’s going to open up right about where it closed. It has had a couple of tough sessions after it was revealed that Taiwan’s semiconductor is not going to enter a partnership with them. Rather, Taiwan’s semiconductor is going to build plants in the United States. So that took away some of that thunder that Intel had.

With that being said, this is a market that I think you need to recognize that we are in the midst of perhaps building some type of basing pattern. A basing pattern takes a long time sometimes, and I think that’s where we’re at here. We’re just hanging out trying to figure out if this is actually the bottom. When you look at the charts from a longer term perspective, it certainly is a good candidate, but this is more of an investment and less of a trade.