Advanced Micro Devices (AMD) shares lost ground again Thursday, a day after the chipmaker joined a sector-wide sell-off following news that the U.S. had imposed new licensing requirements on some AI chip exports to China.

AMD said via a regulatory filing that the new chip curbs would see it face charges of up to $800 million related to the export of its MI308 graphics processing unit (GPU), a chip designed for compute-intensive applications, such as AI and gaming.

AMD shares have tumbled 28% since the start of the year and lost 43% of their value over the past 12 months amid concerns about slowing AI infrastructure spending and the company’s inability to capture a greater share of the AI chip market from sector bellwether Nvidia (NVDA). The Trump administration’s trade policies have added to the uncertainty surrounding the stock.

Below we analyze AMD’s weekly chart and identify major price levels that investors will likely be watching.

Piercing Pattern Marks Potential Reversal

After breaking down below the neckline of a head and shoulders formation in December, AMD shares trended sharply lower until last week’s volume-backed rebound, potentially laying the groundwork for a longer-term reversal.

Importantly, the move created a piercing pattern, a two-day candlestick price pattern that marks a potential reversal from a downward trend to an upward trend.

However, selling resumed this week, with the relative strength index (RSI) edging back toward oversold levels to confirm bearish short-term price momentum. Looking ahead, investors should watch for the indicator to potentially break out above a falling wedge pattern it has formed over the past seven months.

Let’s locate major support and resistance levels by applying technical analysis to AMD’s chart.

Major Support Levels to Watch

AMD shares fell 0.9% to $87.50 on Thursday.

The first lower level to watch sits around $76. This area would likely attract significant scrutiny near last week’s low, which also closely aligns with a range of corresponding trading activity on the chart stretching back to September 2020.

Selling below this level opens the door for a retest of lower support at $65. Investors could seek buying opportunities in this location near the December 2022 retracement low, a region the marked the start of a 14-month uptrend in the stock.

Important Resistance Levels to Watch

A move higher from current levels could see the shares initially climb to around $116. This region provides a confluence of selling pressure near the 200-week moving average, last month’s countertrend high, and a range of comparable price points on the chart extending back to August 2021.

Finally, a longer-term trend reversal in the stock could fuel a rally to $150. Investors who have accumulated shares during the stock’s downtrend may look for profit-taking opportunities in this location near a horizontal line that connects several minor peaks on the chart between December 2021 and August last year. Depending on the timing of such a move, AMD shares may also encounter resistance in this area from the head and shoulders’ neckline.

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As of the date this article was written, the author does not own any of the above securities.