Most semiconductor stocks had a nice rebound and buying volume in the last week. This nice rebound came on the heels of rumors “over supply”. This is a quick hits article that will take a look at the charts for AMD, INTC, MU & NVDA.

AMD, INTC, MU & NVDA

I will review these 4 different stocks in the semi-conductor industry and see if the gains from last week can be extrapolated across the industry or if the stocks were acting independently with their movements.

Advanced Micro Devices (AMD)

I posted a chart for Advanced Micro Devices (AMD) in the Idea Chamber earlier this week. That chart suggested a new uptrend was in place. When I step back to look at AMD’s chart from a long-term perspective on this 20 year monthly candlestick chart, I see a Flag chart pattern that has developed over the last 3 years. Could AMD’s new uptrend be the start of a much larger move and breakout from the Flag pattern? It very well could be and appears to be.

A breakout from a Flag pattern typically involves a move similar to the uptrend that precedes the Flag. I placed a Fibonacci Extension Tool on the uptrend that precedes the Flag pattern to measure AMD’s potential breakout.

The 100% and 161.8% Target Lines from the Fibonacci Extension Tool would be the price objectives for the current breakout. The 161.8% Target Line is just slightly above the long-term resistance trendline for AMD. These price objectives would be approximately 2 years out from today.

Intel Corporation (INTC)

Intel Corporation (INTC) reported earnings April 26, 2018. It beat general estimates for earnings. This 2 year weekly candlestick chart for INTC suggests a price target of[s2If !current_user_can(access_s2member_level1)]….

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I review the long-term and short-term charts for the companies to determine the possibility of a continued breakout for not only the individual companies but the sector as a whole.

If you are not a Trendy Stock Charts member, consider joining today! There are several different subscription plans available.[/s2If][s2If current_user_can(access_s2member_level1)]$65 price target for INTC’s share price over the next 3-4 months.

While the initial reaction from earnings for INTC was not great, I think it was a false move.

The MACD Histogram on this weekly candlestick chart shows buying momentum that is starting to pick up pace again. There has also been above average buying the last few weeks since INTC’s earnings report even though its share price hasn’t seen a significant change in price yet. The increased buying suggests continued demand by the larger institutions.

Micron Technologies (MU)

This is a 3 month daily candlestick chart for Micron Technologies (MU).

MU has been consolidating after reaching a new 52 week high back in early March. The 3 Rising Window candlestick patterns (gap-ups) in the current rebound leading to the break above the overhead resistance trendline suggest the consolidation is over.

If MU’s share price sees any weakness next week, consider using the gap-ups from the recent uptrend as scale-in buying areas. This could be the last pullback before a continued push towards the highs from early March. That would be another sell opportunity to only repurchase them quickly on a pullback from the previous high.

nVidia Corporation (NVDA)

This is a 5 year monthly candlestick chart for nVidida  Corporation (NVDA). I’ve identified a Triangle pattern during its uptrend. Being able to identify a Triangle pattern can help you to maximize profits during a stocks uptrend. But once the breakout from the Triangle pattern is complete, it becomes extremely important to lock in all profits.

When you identify a Triangle pattern in an established uptrend, you have usually found Wave 4 of a Bullish Impulse wave pattern. Triangle patterns have a high statistical probability of developing in Wave 4’s of Impulse wave patterns.

One method of calculating the upside breakout target price is to draw a trendline on the uptrend preceding the Triangle pattern. Then duplicate that trendline and move it towards the end of the Triangle pattern. This simple method provides an investor with an upside target price area to start locking in gains as well as provide for an estimated time frame for the price targets to be reached. It looks like NVDA should reach the $350ish area around Christmastime.

It is very important to lock in gains after a breakout from a Triangle wave pattern. Why? Wave 5 is the Elliott wave that develops from the breakout of the Triangle. Wave 5 is the last push upwards for the stock’s share price before entering into a long consolidation period. When Wave 5 ends, the uptrend is over and the consolidation or correction period begins.

Now don’t get me wrong, Wave 5’s are still very profitable. It is just more important to lock in all gains for the stock and sell most shares when a stock completes a Wave 5. Unless your gains are large enough to weather the entire consolidation period, which could be as long as a year or more, selling near the top of Wave 5 usually proves to be the best strategy.

AMD, INTC, MU & NVDA Summary

In summary, AMD, INTC, MU & NVDA all show promise for continued advances upwards. Some have longer time frames than others, but for now all signs point up. Even the pullback and consolidation period for Micron Technologies (MU) seems to have run its course.

While the above provides a general roadmap going forward, if anyone has interest in a stock and would like some support areas or possible entry points identified, please leave a request in the Idea Chamber and I will break down any of the companies in more detail. For now though, I think the sector looks like one to stay in….

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