Nasdaq Set for Best Second Quarter Since 2020, Fueled by Chip Stock Rally

AMD shares have recorded a strong 9.8% gain in the last 24 hours, with the RSI reaching 71, entering overbought territory. While the news headline presents a positive macro outlook for the chip sector, such a rapid short-term rise may be followed by profit-taking or sideways movement. Although the MACD and moving averages still support an upward trend, the overbought signal and the current price being well above the 20-day moving average warrant caution. Therefore, a neutral stance is advisable for the short-term direction, but the downside risk should be considered low due to the strength of the trend.

NDX has shown strong momentum, rising 2.88% in the last 24 hours. The RSI at 69.4 is approaching overbought territory but is not yet at dangerous levels. The MACD line is well above the signal line and showing positive divergence, indicating that the uptrend may continue. The price is trading above both the 20-day and 50-day moving averages, supporting the short-term outlook. However, with the end of the quarter approaching, profit-taking may occur, limiting upside potential.

The headline reflects the generally positive sentiment in chip stocks, signaling a supportive macro environment for NVDA. Technically, the price is above the 20-day moving average, and the RSI at 55 indicates a neutral-to-slightly-buy zone, suggesting short-term upside potential. The MACD line is above the signal line and turning upward from negative territory, indicating momentum turning positive. However, as the price is just below the 50-day moving average, this level may act as resistance. Therefore, the upside expectation is supported with moderate confidence.

Intel (INTC) recorded a strong rally of over 8% in the last 24 hours, closing at $139.96. The RSI stands at 67.5, approaching overbought territory but not yet signaling an overbought condition. The MACD line is well above the signal line and in positive territory, indicating sustained bullish momentum. The price is trading above both the 20-day ($130.62) and 50-day ($133.00) moving averages. The news headline supports the overall uptrend in chip stocks, and INTC is expected to benefit from this positive sentiment.