Global computing giant NVIDIA has been on a tear since bottoming around early June. Then last week, the stock deflated after the company posted strong earnings and delivered moderate guidance. Nevertheless, the pattern of higher highs and higher lows is indicative of a sector leader. NVIDIA certainly fits the bill; the semiconductor index often takes its cue from this stock.
The technical picture also looks promising. Money flow has been strong, and the price action over the past few sessions has been constructive. The test of the 20 ma has been reliable as well. When the stock last tested the 20 ma in early October, it ran up nearly 20% in six weeks. That is very bullish activity.
RSI is decent, and I think it could improve. I’d like to see a breakout in price action above the 220 level to separate this name from the recent consolidation. I think it’s poised for a run higher into the end of the year.
NVIDIA Corp. Chart Analysis
Take a deeper dive into the chart action (Nasdaq: NVDA). Learn how to read the technicals as Bobs marks up our chart of the week.
Love what you’re learning in our market analysis? Don’t miss a single video! Get the latest chart action delivered directly to your inbox every week as Bob breaks down stocks to watch and potential trade options.
About NVIDIA Corp.
NVIDIA is a visual computing company with operations worldwide. The company’s products are used in gaming, professional visualization, datacenter, and automotive markets. The company was founded in 1993 and is headquartered in Santa Clara, California.
