Advanced Micro Devices (AMD) shares gained ground in extended trading on Tuesday after the chipmaker posted first-quarter earnings that surpassed Wall♚ Street expectations.

Sales in the company’s data center segment surged 57% in the quarter, helping to allay concerns of a slowdown in 澳洲幸运5官方开奖结果体彩网:AI spending amid uncertainty about what impact the Trump administration’s tariffs will have on global growth. However, the chipmaker cautioned that its results would be affected by charges of roughly $800 million related to tighteningꦫ export restrictions on sales of its chips to China.

Through Tuesday's close, AMD shares had gained 18% since the start of the year and risen nearly 30% from their April low, far outpacing the performance of the 澳洲幸运5官方开奖结果体彩网:S&P 500 over those periods.ꦫ The stock rose 1.7%ꦍ to $100.32 in after-hours trading Tuesday.

Below, we take a closer look at AMD’s chart and apply 澳洲幸运5官方开奖结果体彩网:technical analysis to identify major price levels that investors will likely b🧸e w♔atching.

Descending Channel in Focus

AMD shares have trended lower within a 澳洲幸运5官方开奖结果体彩网:descending channel since October last year, tagging the pattern’s upper and lower tre🃏ndlines on multiple occasions since that time.

More recently, the stock has rallied toward the channel’s upper trendline and 澳洲幸运5官方开奖结果体彩网:50-day moving average, two indicators that provided signifꦅicant resistance on the chart in late March.

Meanwhile, the 澳洲幸运5官方开奖结果体彩网:relative strength index (RSI) has recently crossed back above the 50 threshold ahead of the chipmaker’s earnings report♑ to signal improving price momentum.

Let’s point out several major 澳洲幸运5官方开奖结果体彩网:support and resistance levels on AMD’s chart that may come into play.

Major Support Levels to Watch

The first lower level to watch sits around $93. This area on the chart may provide support near the prominent October 2023 low, which also closely aligns with a period of trading activity toward the end of last month.

A failure of bulls to defend this important technical level could see the shares drop to lower support at $78. Investors may seek 澳洲幸运5官方开奖结果体彩网:buy-and-hold opportunities in this region near the stock’s 澳洲幸运5官方开奖结果体彩网:bear trap April low.

Crucial Resistance Levels to Monitor

Upon an earnings-driven move higher, it’s worth eyeing the crucial $116 level. The shares may face selling pressure in this area near a 澳洲幸运5官方开奖结果体彩网:horizontal line that connects the December 2023 retracement low with peaks that formed on the chart in February and March this year. It’s worth pointing out this level also sits at the 38.2% 澳洲幸运5官方开奖结果体彩网:Fibonacci retracement level when applying a grid from the Oc🦩tober high to April low.

Finally, buying above this level could lead to a retest of overhead resistance around $132. Investors who have 澳洲幸运5官方开奖结果体彩网:accumulated AMD shares at lower prices may decide to 澳洲幸运5官方开奖结果体彩网:lock in profits in this region near last year’s notable August swing low and this year’s early-January 澳洲幸运5官方开奖结果体彩网:countertrend high.

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