The charts are pointing to a further rally for one surging semi stock: Trader

Shares of Advanced Micro Devices surged 9 percent Wednesday for their third gain of more than 4 percent in the past three sessions. And AlphaShark's Andrew Keene says there's more room to run.

The company's release of details about new processing chip Epyc appears to have substantially excited investors. Meanwhile, from a technical analysis perspective, Keene believes the charts are pointing to an even bigger rally for AMD.

On a daily chart of Advanced Micro, Keene indicated that he sees "support" on the downside at $10 and upside "resistance" at $15, which the stock last hit in late February. But Keene also points out that the shares have now surpassed the "breakout level" of $12.50, a move that has the trader looking to bet on the chipmaker.

"If we close at the high of the day, I think [Advanced Micro has] got more movement to the upside," Keene said Wednesday on CNBC's "Trading Nation." "I'd be looking to buy any pullback here on AMD."

In fact, Keene isn't the only trader bullish on the semiconductor name. Call options expiring in late June with striking prices of $13 and $13.50 were some of the most heavily traded single-stock options in the market Wednesday. Buyers of these options are betting that the semiconductor stock will continue to climb over the next few weeks.

Advanced Micro is currently up 22 percent year to date and outperforming the semis as a whole, as the sector is up 19 percent so far this year.

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Trading Nation is a multimedia financial news program that shows investors and traders how to use the news of the day to their advantage. This is where experts from across the financial world – including macro strategists, technical analysts, stock-pickers, and traders who specialize in options, currencies, and fixed income – come together to find the best ways to capitalize on recent developments in the market. Trading Nation: Where headlines become opportunities.

Michael Santoli

Michael Santoli joined CNBC in October 2015 as a Senior Markets Commentator, based at the network's Global Headquarters in Englewood Cliffs, N.J.  Santoli brings his extensive markets expertise to CNBC's Business Day programming, with a regular appearance on CNBC's “Closing Bell (M-F, 3PM-5PM ET).   In addition, he contributes to CNBCand CNBC PRO, writing regular articles and creating original digital videos.

Previously, Santoli was a Senior Columnist at Yahoo Finance, where he wrote analysis and commentary on the stock market, corporate news and the economy. He also appeared on Yahoo Finance video programs, where he offered insights on the most important business stories of the day, and was a regular contributor to CNBC and other networks.

Follow Michael Santoli on Twitter @michaelsantoli

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