What's going on moon gang, i hope you're having a phenomenal day. My name is matt and in this video i will be doing a technical breakdown of both nvidia and amd i'll, be laying out the key levels of support and resistance. So we have a better game plan moving forward, but before i get into that, if you're new to the channel don't forget to join the moon gang by hitting the subscribe button, my goal is to hit 5 000 subscribers by the end of this year and your Help with that would be truly appreciated. Also, if you enjoy this type of content, it would be great if you could drop a like, because it really helps with getting this video in front of other people and now with that out of the way, let's dive into it.

As a quick reminder, both nvidia and amd work in the semiconductor industry in the world of stocks, this term is used for companies that create and develop processing chips that are used in things such as our computers, tablets and phones and, more specifically, a lot of the Time this is referring to companies that create gpus or graphical processing units. These components are extremely important in the world of gaming data centers and artificial intelligence, as you can imagine, as these fields continue to grow at an incredible rate, so do the related companies such as nvidia and amd. Now that you have a better idea of what business sector we're dealing with, let's kick things off with nvidia nvidia trades under the stock symbol, nvda and from mid-march until august it was on this pretty picturesque, run upward and then the velocity was actually increasing around the Time of its previous earnings report and then the wheels kind of came off at the start of september. If you watch my previous technical breakdown of nvidia you'll be familiar with the analysis on the screen now from mid-march.

Until now, nvidia has been putting in higher lows and the same could be said about its highs all the way up until september, this surge at the end of august became a little bit too much to handle and, after posting, a new all-time high around 590 dollars. The stock quickly declined 20, but as of the most recent close around 543, it's down off of that high by only 7.5. For those of you who are curious, nvidia is positive in the month of october, but just barely it's up: 0.46 percent and over the past three months, it's up 30 over the past six months, it's up 83 and from the start of 2020. Until now, it's up a pretty noteworthy 131 percent from a technical perspective.

I really like what i'm seeing in nvidia's chart. Yes, the bull camp got a little overzealous when september started and that's why it was rejected and forced to consolidate between 475 and 520, but even with that happening, the trend of putting in higher lows was never broken and in fact, relative to the previous high. We now have a new higher high to me. It looks like we have a classic abcd pattern.

Going on this trendline hit would be your a then. This recent high would be your b, i'm calling for a bounce here, which would be c, and then we would make a new d either at the previous high or a new all-time high above 590., based on the most recent close, the closest support, which also aligns With this bottom trendline would be a decline of 4. I'm not saying nvidia stock has to get exactly to 520 because, as you can see here the last time it came close to the trend line. It was a slight undershoot.

If this bounce ends up becoming a reality, the first resistance would come at 550, which would be a gain of 1. Then we have the most recent high at 575, which would be a gain of 5 percent, and after that we have the all-time high at 590, which would be a gain of 8. I strongly believe investing in this region is a great risk to reward opportunity. You could cut your shares if the stock drops below the support at 520, but on the flip side, there's potential for a 70 dollar upside to be fully transparent.

I personally do own shares of nvidia, and my cost basis is just above 500. My two most recent purchases came on this dip on september, 8th and then i bought even more shares on september 14th in terms of risk, i'm watching 470, because if the bears pushed the stock below it, it would invalidate this technical upward trend and in terms of A price target i honestly wouldn't consider selling any of my shares of nvidia below 600.. You have to understand. I absolutely love nvidia, because it is extremely well positioned in the semiconductor industry.

So as long as ai gaming and data centers continue to grow so will nvidia as long as this stock chart stays intact. I will be happy to hold my shares of the company for years to come. Now. Let's switch gears to one of nvidia's main competitors, amd advanced micro devices, trades under the stock symbol amd and as of the most recent market, close it's just under 82.

At that price level. That means that amd has a market cap of 96 billion dollars. To give you a little bit of perspective, nvidia has a market cap of 335 billion dollars, so amd is roughly a third of the size over the past three months. Amd is up 19 over the past six months, it's up 45 and from january 2020.

Until now it's up 78 - these are definitely considerable gains, but its path to getting here was very different than nvidia's, like nvidia amd was able to rally off of this low in march, but that rally was short-lived and it quickly became range bound in between 48 dollars And 59, then out of nowhere, there was this stock explosion and since then, amd is once again range bound in between 73 dollars and 87, and just so, you know similar to nvidia. Amd is essentially break even in the month of october, when you have technical structures such as this, they are theoretically easy to play. You would buy your shares as close to the bottom of the range as you can, and if the stock breaks below that you would cut your losses and then, on the other hand, if the stock does bounce once again, which is what you would be betting on. You could target the top of the range which in this case, would be at 87..

Of course, you don't have to sell all of your shares at this level if, for whatever reason, you think a breakout is coming if you're a swing trader and you're interested in amd, there's not much. You can do at the moment, because it's in the middle of this range, so in order to optimize your risk to reward, you should be looking for the technical levels of support and resistance to place your trades, speaking of which, from the most recent close, the first Support would be a decline of almost 10 percent and the first resistance would be a gain of 6.5 and the all-time high would be a gain of 15. Personally, i don't own any shares of amd, and that's simply because i like nvidia better, i don't think amd - is a bad company. I'm just attracted to how dominant nvidia is in the world of gaming.

I have a suspicion that gaming will explode over the coming decade and i personally believe that nvidia is a better option to ride that wave with. That being said, i'm not against investing in amd. In fact, i think it will also do well in the coming years. I just personally want a little bit more diversity in my own portfolio as things currently stand, amd is caught in a consolidation pattern, so it might be best to sit on our hands and wait to see which way it breaks.

On the other hand, nvidia is approaching a key level of support where i think there's a high likelihood. It will bounce and could even potentially set up a test of the all-time high, as things continue to develop, both fundamentally and technically. With these two companies i'll make sure to keep you updated in future, videos also keep you posted on. If i decide to buy or sell any shares, make sure you have your notifications turned on, so you don't miss any of those updates.

If you made it to this point in the video, your support is truly appreciated. If you want to help me, make more videos like this there's a few things you could do, you could drop a like leave a comment and join the moon game by hitting the subscribe button. All that engagement really helps with the youtube algorithm and getting this video in front of other people who might be interested and, as a quick side note. If you're interested in my charting software there's a link to a free 30-day trial.

In the description of this video and there's also a link to the weeble trading platform, if you sign up and make the appropriate deposit there's a chance, you can win a stock. That's valued up to sixteen hundred dollars, thanks for watching and until next time. Best of luck in the markets, you.