Advanced micro-devices (AMD) shares fell sharply in extended trading Tuesday after the chipmaker announced Third quarter profits below expectations and issued a light current quarter income prospects, despite record turnover for data centers.

During the company period conference callCEO Lisa Su told analysts that the chipmaker now expects data center revenue to exceed $5 billion in 2024, up from $4.5 billion forecast in July. However, the stock’s after-hours decline indicates that investors may have sought more amid insatiable demand for artificial intelligence (AI) infrastructure.

AMD shares have gained about 13% year to date as of Tuesday’s close, underperforming tech-heavy stocks. Nasdaq the index’s return by about half over the same period. The stock fell 7.6% to $153.57 after hours Tuesday.

Below we analyze the techniques on AMD weekly chart and highlight important price levels after earnings that other investors might be watching.

Descending channel

After a reverse hammer marked AMD absolute record (ATH) in early March, the stock traded within a manual descending channel.

More recently, the price has rebounded towards the top of the trend. trend linealthough inferior volumes suggest that major market players stayed on the sidelines ahead of the company’s quarterly earnings release.

Amid the stock’s projected post-earnings earnings salelet’s look at the key support levels which can come into play and also predict a chart price target worth watching if stocks resume their longer-term upward trend.

Key Support Levels to Watch

The first important support level to watch is around $162. Although the stock is poised to open below this zone on Wednesday, it’s worth keeping an eye on if bulls attempt to defend a trend line connecting the prominent November 2021 peak and a range of comparable trading levels within the descending channel.

A decisive breakdown below that level, shares could fall to the $132 area, a place where investors can look for buying opportunities around a series of prices near the June level. swing high and August swing low.

Further selling in the stock opens the door for a decline to around $112, or about 33% below Tuesday’s closing price, where shares find a confluence support of the 200-week moving average and a horizontal line dating back to August 2021.

Longer term bullish price target

If AMD stock resumes its long-term uptrend, we can forecast a bullish price target using a bar pattern, a technique that uses historical trends on the chart to predict future price movements.

In this case we take the stock orient yourself higher from October 2023 to March of this year and reposition it from the early August low, which projects a price target of around $275.

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