Key takeout
- AMD stock continued to win the ground on Tuesday, boosted by a bright commentary from Wall Street, following Chipmaker's “Advance AI” event last week.
- The stock broke out from the pennant pattern earlier this month, closing above the 200-day moving average, which was closely watched during Monday's trading session.
- Investors will need to watch key overhead areas on AMD's charts for $145, $160 and $175, while support levels are monitored at $115 and $108.
Last week, stocks in Advanced Micro Devices (AMD) continued to grow on Tuesday, boosted by a bright commentary from Wall Street, following the chipmaker's “Advance AI” event.
Piper Sandler raised its stock price target on Monday, expressing its enthusiasm for AMD's recently announced Helios Server Rack architecture. Investment Bank noted that hardware expected to be released in 2026 is “crucial” for the growth of AMD Instinct GPUs.
Meanwhile, analysts at Bank of America speculate that chipmakers can announce Amazon (AMZN) as partner after Tech Giant's cloud unit Amazon Web Services (AWS) was a key sponsor of last week's event.
AMD stocks rose 0.6% to around $127 on Tuesday after surged nearly 8% yesterday, praising S&P 500's progress. Inventory has grown by 66% since the first half of April, but has only increased by 5% since its launch in 2025 due to uncertainty about chip curbs and the company's ability to gain a larger share of the lucrative AI chip market currently dominated by NVIDIA (NVDA).
Below we will classify AMD chart technologies and point out key price levels that are worth paying attention to.
Stocks collect 200-day moving average
After hitting the heights in May, AMD stock formed a pennant. This is a chart pattern showing the continuation of the stock's upward trend that began in early April.
In fact, stocks broke out from the pattern earlier this month, staging near Volumeback, where Monday's trading session was closely watched the 200-day moving average. Additionally, the relative strength index shows bullish momentum, generating a read just below the indicator's excess threshold.
Identify three important overhead areas on AMD's charts to watch and point out the level of support you deserve to monitor.
Important overhead areas to watch
A follow-through purchase could cause your first meeting to $145. The area could potentially sell sales pressure near several peaks and troughs that formed on the charts between April and December last year.
In the critical proximity above this critical area, the stock's test resistance can be around $160. Investors can try to lock in the profits of this location near the trendlines that connected the various corresponding trading activities, developed on the charts from April to October last year.
The next overhead area to watch is $175. Stocks can sometimes come across sellers in the area near the prominent peaks that emerged in May and October last year.
Support level worth monitoring
It is worth monitoring the $115 level first during inventory retracement. This stock could potentially encounter support near the retest of last week's pennant pattern breakout points.
Finally, if you sell below this level the door opens to drop support down to around $108. Investors can try to accumulate AMD stocks at this location near the lowest in the pennant pattern and low in early February.
Any comments, opinions and analysis expressed on Investopedia are for informational purposes only. Read the Warranty and Liability Disclaimer for more information.
As of the date this article was written, the author does not own the above securities.
