AMD Exhibiting Relative Strength Versus NVDA

AMD and NVDA-- Some VERY BIG companies announced their intention to buy AMD's version of AI chips, which apparently will be considerably less expensive than the "only game in town" at the moment, NVDA's chips (see CNBC bullet points below)...

Technically, my pattern work on AMD indicates that the upleg from its 10/26/23 low at 93.04 to the 11/29/23 high at 125.73 (+35%) is complete, BUT the ensuing weakness into the 116.00 support area so far represents a very shallow (8%) pullback within the otherwise very bullish pattern structure. As long as 116.00 contains any forthcoming weakness, AMD has the right look of a finished a Bull Flag type of rest-digestion period ahead of upside continuation. A sustained climb above 122.80-123.00 will trigger new upside reversal signals in my work, and will point AMD to a test and hurdle of the Nov. high at 125.73, in route to 133-136 thereafter... last is 120.10...

As for NVDA, it too completed a powerful advance from its 10/31/23 low at 392.30 to the 11/21/23 high at 509.50 (+30%), BUT its ensuing bout of weakness into the 450 area (-12%) is deeper than AMD and exhibits a setup that leaves the pullback still vulnerable to lower prices into the 432-438 next corrective target window. Only a sustained climb above 473-475 will indicate that the correction is over, and that NVDA is in route to a run to challenge multi-month resistance from 510 to 520, and thereafter, to 540-550...

Bottom Line: AMD is exhibiting relative strength vs. NVDA in the aftermath of their respective recent price highs... 

CNBC.com