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.