The market got a deluge of earnings reports from technology giants last night. Companies like Alphabet Inc (NASDAQ:GOOG, NASDAQ:GOOGL), Amazon.com, Inc. (NASDAQ:AMZN), Intel Corporation (NASDAQ:INTC) and Microsoft Corporation (NASDAQ:MSFT) all provided their quarterly results. In general, the numbers were great, but the market’s reaction to the numbers haven’t been completely consistent.
Today’s three big stock charts takes a look at the reaction to Alphabet Inc (NASDAQ:GOOGL) and Intel Corporation’s (NASDAQ:INTC) results while looking forward to Monday’s earnings release from Advanced Micro Devices, Inc. (NASDAQ:AMD).
Intel Corporation (INTC)
Intel gave some good numbers to Wall Street yesterday as the company beat on the top and bottom line. The color on the quarter after the release gave investors a reason to sell as PC demand and a few other metrics weren’t up to par.
INTC stock is finding itself trading at a strong foundation of technical support that is likely to cause the chart watchers to step in and start buying.
Outside of the simple round numbered support provided by $36, there are three major trendlines trading within a few cents of $36. This fortifies this price for Intel as short-term support.
The critical 50- and 200-day moving averages are currently sitting at $35.90. The double-barreled support of these two indicators should be considerable as INTC stock works out the post-earnings selling.
In addition, the 100-day moving average is just above $36, trading at 36.22. A move back above this trendline will confirm a hold of the 50- and 200-day and strengthen the intermediate-term outlook for the stock, drawing in more technical buyers.
Shares of Intel have continued to lag the market; however, the 3% dividend is starting to make it more attractive as the interest rate environment has become hazy. For now, the chart is still friendly for bullish traders.
Advanced Micro Devices, Inc. (AMD)
In a perfect segue, Advanced Micro Devices announces their earnings on Monday after the market’s close. AMD is trading 1.5% lower in sympathy to Intel’s earnings results, but the stock may actually have more to lose given the chart.
Unlike Intel, Advanced Micro Devices shares just got rejected by their 50-day moving average, which is rolling over. This transition alone puts AMD at risk as a the declining 50-day usually results in an increased probability that the stock will continue its decline.
Support for AMD shares resides at an even $12 from the initial look at the chart. This is obviously from the round numbered nature of that price, but also a look back shows definite support and resistance from the technical activity over the last year.
If $12 were to give way next week, which we are expecting to be the case, then technical traders will begin to eye $10 as the next level of solid support worthy of buying Advanced Micro Devices on a dip. This price will have the stock deep in oversold territory as well as pressing against the stock’s 200-day moving average.
The move to this price would represent an incredible 35% decline from its highs for the year, another number that would get the technical traders excited as AMD stock would represent a heavy discount against other peer companies.
Alphabet Inc (GOOGL)
Alphabet shares are soaring after another great earnings report. Currently the stock is trading 4% higher and is avoiding some of the selling pressure that we are seeing on other companies that beat their numbers last night. This suggests that traders are letting their profits run instead of hitting the sell button on GOOGL.
This morning’s move takes Alphabet further into new high territory as the stock breaks above $900 for the first time, which will gather more momentum.
The move also breaks GOOGL shares well above their top Bollinger Band by a magnitude not seen in more than two years. This suggests two things. First, we will see some profit-taking within the next few weeks as this combines with an overbought reading on Alphabet stock. Second, and more bullish, is that the stock is likely to continue to see positive volatility movements (upside volatility).
For now, the volatility and the trend remain very friendly for GOOGL shares.
As of this writing, Johnson Research Group did not hold a position in any of the aforementioned securities.
