Nvidia (NVDA) – Why Nvidia’s Advanced Micro Devices Are Crashing Despite Looser US Export Rules

Advanced Micro Devices, Inc. AMD and Nvidia Corporation NVDA were each trading down more than 1% on Friday after a bearish day on Thursday, the shares fell 3% and nearly 5%, respectively, from Wednesday’s close.

On Wednesday evening, Nvidia announced that it had received information from the US government indicating that in order to export its AI processors to China, it would first need to obtain a license. AMD revealed through a spokesperson that it received the same communication.

Nvidia said it was in talks with the government on how to secure exemptions, and on Friday the government appeared to ease some of its restrictions.

Friday’s news helped provide temporary support for AMD and Nvidia, but when the S&P 500 index rejected the $4,000 level, the market took a bearish turn, dragging both chipmakers down with it.

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The table of advanced micro-devices: AMD started trading in a downtrend on August 4th and has since had a very consistent series of lower highs and lower lows. AMD’s most recent low high was printed on August 26 at $97.60 and the most recent low was formed at $78.52 on Thursday.

  • AMD printed a bullish dragonfly candlestick on Thursday, which indicated the stock was likely to rebound on Friday. AMD was able to break Thursday’s daily high from an initial pattern of inside bars, which may have created the next lower high in the downtrend.
  • If AMD closes the trading day near its low for the day, the stock will print a bearish Marubozu candlestick, which could indicate that lower prices will return on Monday. If the stock is able to rise to close the session flat or at a high for the day, AMD will print a dragonfly or hammer candlestick respectively, which could indicate that a new upside bounce is looming ahead. horizon.
  • AMD has upper resistance at $84.24 and $87.45 and lower support at $79.70 and $76.84.

The Nvidia chart: Compared to AMD, Nvidia showed weakness on Friday as although the stock printed a bullish hammer candlestick on Thursday, Nvidia was unable to break out of the inside bar pattern it was forming. The inside bar is bearish in this case as Nvidia was trading lower before forming the pattern.

  • Nvidia is also trading in a downtrend, with the most recent lower high formed on August 25 at $179.47 and the most recent lower low printed at $132.79 on Thursday. Nvidia may have to trade sideways for a while before bouncing back, but the rebound will eventually happen as Nvidia’s Relative Strength Index measures around 29%, putting the stock in oversold territory.
  • Nvidia has upper resistance at $145.75 and $161.37 and lower support at $135.43 and $125.86.

See also: Motorola Solutions (MSI) – Top Financial Stories Friday, September 2: GM’s Cruise recalls some Robotaxis over software glitch, Chinese tech giant suffers $43 million writedown on Bitcoin and Ethereum Holdings, and more .

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