Advanced Micro Devices (AMD) shares climbed again Wednesday amid optimism about the company's plans to restart exports of its MI308 chips to China once it receives final approval from U.S. authorities.

Reports that the U.S. Commerce Department had informed the company that it will once again review applications for licenses to sell the chips in China sent AMD shares more than 6% higher on Tuesday. The stock gained another 3% Wednesday, closing at around $160, its highest level since late October.

Rival chip giant Nvidia (NVDA) had announced late Monday that it planned to resume exports of its H20 chips to China after receiving assurances from the Trump administration that the restrictions that were imposed in April would be lifted. AMD had previously said it expected to face charges of up to $800 million related to the export of its MI308 chip, while Nvidia anticipated the curbs to cost it $5.5 billion. 

AMD shares have more than doubled since hitting their low for the year in early April. The stock is up 33% so far in 2025, outpacing Nvidia's 28% year-to-date gain.

Below, we take a closer look at AMD’s chart and apply technical analysis to point out price levels that investors will likely be watching.

AMD shares gapped above a tight rectangle formation in Tuesday’s trading session, laying the groundwork for a continuation move higher.

Importantly, the breakout occurred on the highest volume since mid-June, suggesting buying conviction from larger market participants. Moreover, the relative strength index confirms bullish momentum, though it also flashes overbought conditions with a reading above the indicator’s 70 threshold.

It’s also worth noting that the 50-day moving average crossed above the 200-day MA on Wednesday to form a golden cross, a chart signal that indicates the start of a new trend higher.

Let’s identify two key overhead areas to watch if momentum keeps building in AMD shares and also locate support levels worth monitoring during potential retracements in the stock.

The first overhead area to watch sits around $187. This area on the chart could provide resistance near the January 2024 peak and last year’s July countertrend high. The location also roughly aligns with a measured move price target that calculates the distance of the stock's trend that preceded the rectangle and adds that amount to the formation's top trendline.

A successful close above this area could fuel a rally toward $215. Tactical traders will likely eye this level closely, given it sits just below last year’s high, marked by a textbook shooting star candlestick pattern.

During retracements, investors should initially monitor the $148 level. Investors who avoid chasing breakouts may look for buying opportunities in this location near the top of the rectangle formation, which touches a horizontal line extending back to December 2023.

Finally, a deeper pullback in AMD shares could see the price retest lower levels around $123. This area on the chart finds a confluence of support near the key moving averages and a trendline that connects a range of corresponding trading activity stretching from November 2023 to June this year.

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