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Earnings reports from FAANG stocks weighed on U.S. equities in the last few days.

Will the earnings of Advanced Micro Devices (AMD) extend the tech stocks’ downtrends this week?

Here’s a setup that I’m looking at:

Advanced Micro Devices (AMD): 1-hour

Advanced Micro Devices (AMD) 1-hour Chart

Advanced Micro Devices (AMD) 1-hour Chart

April was not a good month for Advanced Micro Devices (AMD), which peaked at $124.00 and didn’t look back until buyers put up a fight at $82.00.

Concerns over higher inflation and interest rates did not do the tech stock any favors and that was before other major U.S. tech companies like Amazon, Netflix, and Alphabet spooked the equities space further with disappointing earnings numbers.

AMD bulls have a chance to buy this week as the company prints its earnings reports for Q1 2022.

If you recall, AMD showed strong growth and earnings per share (EPS) results in Q4 2021 while competitors in the chip sector worried about supply shortages and tighter margins.

It also helps that the company finished acquiring semiconductor company Xilinx in February and can take advantage of a bigger portfolio.

Analysts see earnings at 91 cents per share, which would represent a 75%-ish improvement from last year.

Better-than-expected earnings numbers would attract bulls who are already paying attention to Stochastic‘s oversold signal and a possible trend line support on the 1-hour time frame.

Depending on the momentum, AMD could hit the $90.50 levels near the 1-hour chart’s 100 SMA and trend line resistance or even break its weeks-long downtrend.

If tomorrow’s numbers disappoint, however, or if traders continue to stay away from “risky” bets like equities ahead of the Fed’s statement, then AMD could break today’s support and drop below April’s lows.

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