AMD surged more than 9% yesterday after it launched its new chips

AMD surged more than 9% yesterday after the chipmaker launched its new chips. Supposedly there is a $45bn market for its data chips. Now its shares are trading at around $128.92 a share. We can see that the price has now almost approached the tough resistance of $133.73, a level seen back in June. AMD has found it difficult since the summer months to place its foot in the market with competition for leader Nvidia, persistent global inflation and the market sell-off in the last quarter. However, the launch of its chips may have sparked some optimism at a time when markets are also pricing in rate cuts for 2024. Therefore, a break and close above the resistance of $133.73 may see its share price head higher towards the $140 area (mid-term). The key support now sits along the ascending trendline at $120.93, a break below it would then require a test of $116.37 before a re-evaluation of its short-mid term outlook. Looking at the technical indicators, the MACD is now only slightly negative with the MACD line narrowing the gap to its signal line. Whereas the RSI risen sharply, clearly positive, reading 67.