Trading Nvidia, AMD and Intel as Congress Votes on the Chips Act

Chip stocks like Nvidia (NVDA) – NVIDIA Corporation Report, Get Advanced Micro Tools (amd) – Advanced Micro Devices Inc. Get Report, Intel (INTC) – Get the Intel Corporation Report and more are in focus on July 20th.

That’s why not only do these three stocks clock in on their sixth straight daily profit, but earnings also begin to roll in and in the form of the CHIPS Act – formally the Creating Auxiliary Incentives for the Production of Semiconductors for America Act – in. Congress is voting.

Despite the sell-off, earnings remain somewhat resilient. Taiwan cm (TSM) – Get Report of Taiwan Semiconductor Manufacturing Co., Ltd. The report beat a top and bottom line last week and provided upbeat guidance.

Taiwan Semi, the largest company in this sector, reports ASML Holding NV (asml) — Get ASML Holding NV report, which said this morning that supply-chain disruptions and uncertainty forced it to lower its guidance. However, it did come with a strong second quarter.

Semi stocks are also seeing a potential boost from Congress.

As previously reported, the Chips for America, or CHIPS, Act cleared its first procedural hurdle by a 64-34 vote in the US Senate late Tuesday.

If it passes, Intel, Micron (mu) – Micron Technology Inc. Receive reports and others are reportedly set to benefit from the law.

Let’s look at the chart.

trading nvidia stock

Nvidia stock daily chart.

Chart courtesy of TrendSpider.com

All three stocks hit higher levels last week, marking a major bullish development.

Working on its 10th rally in the last 12 sessions, Nvidia has been trading well lately.

On Monday, Nvidia was rejected by the 50-day moving average. On Tuesday, it rose to the 10-week moving average but could not move further. With today’s action, Nvidia is moving on Both Measure, with traders now focusing on filling the $180.50 gap.

If it can push above this area, resistance near the June high and $195 is at play. There is an earlier support trending above $200 and between $208 and $210.

scroll to continue

On the downside, the bulls want to see support from the 50-day and 10-week moving averages, but they need The 10-day and 21-day moving averages and preferably $160 to watch for support.

trading amd stock

AMD stock daily chart.

Chart courtesy of TrendSpider.com

AMD stock has also traded fairly well lately, up nearly 25% from this month’s low.

But the stock is now moving into a key area on the chart, with the 10-week and 50-day moving averages trending. It is also trading with a wedge resistance (blue line) at $90.60 with a 50% retracement.

From here, the levels are pretty straight forward.

On the upside, AMD stock needs to clear $90.60 to continue higher. If this can happen, a gap-fill level of $94.25 and 61.8% retracement are in play near $95. Above this a key $100 level comes into play, followed by a 78.6% retracement at $101.44.

On the downside, $80 to $81 is key. A drop below that level places it below support as well as the 10-day and 21-day moving averages.

trading intel stock

Intel stock daily chart.

Chart courtesy of TrendSpider.com

Then there’s Intel. The stock hasn’t traded so well, but it ended with a key support near $38. With the recent rally, the shares are trying to move back to a major breakdown spot.

For those interested in “Big Picture Setup” for Intel, the monthly setup can be found here.

Amid the current rally, Intel stock is now rising in a 50% retracement and 50-day moving average. It is also close to May’s low.

If the stock pulls back, a 10-day holding is ideal, but holding the $38 and 21-day moving average is more important.

On the upside, a sustained rally kept the intra-game level close near $42.60. This level is the bottom of a key area that is highlighted on the chart between $42.50 and $44. Let’s take a look at how Intel stock trades there — assuming it can get there.

Source