Markets generally have a tough time rallying around semiconductor stocks, even thought they are an important technology bellwether. Not only do they represent what is really going on inside the overall technology sector, they are also often an indicator of leadership.
Yet, during the Q3 earnings season reports, we have seen a very mixed bag of results, with some companies looking really good and others really poor. NVIDIA falls into the former category; they blew away expectations last week, and in the process, saw buyers piling into the stock. Following a 50% gain since late September, the stock has continued to rise despite a two-day market sell off.
NVIDIA Stock Chart (Nasdaq: NVDA)
The chart shows some great potential. On Monday, the name broke through a resistance level on solid volume, the MACD is still on a buy signal, relative strength is impressive, and the recent crossover of the shorter term moving averages acts as support for a move higher.
Momentum indicators are overbought and the MACD buy signal was renewed just last week; it will confirm later this week. Volume trends are extremely positive, and while this stock only moves in small increments, up and to the right is where you want price to be moving. Current support is at 30 – but that might be a place to pick up some calls.
In our Explosive Options service, we added the January 31 call on on Friday, November 6.
NVIDIA Video Chart Analysis
Take a deeper dive into the chart action (Nasdaq: NVDA) and learn how to read the technicals and analysis as Bob Lang marks up our chart of the week.
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About NVIDIA
NVIDIA Corporation operates as a visual computing company in the United States, Taiwan, China, the rest of Asia Pacific, Europe, and other Americas. The company operates through two segments, GPU and Tegra Processors. The GPU segment offers processors, which include GeForce for PC gaming; Quadro for design professionals working in computer-aided design, video editing, special effects, and other creative applications; Tesla GPU accelerators for researchers, deep learning, and big-data analysts; and GRID for cloud-based streaming on gaming devices. Its products are used in gaming, enterprise, high performance computing and cloud, and automotive markets. The company sells its products primarily to original equipment manufacturers, original design manufacturers, system builders, motherboard manufacturers, add-in board manufacturers, and retailers/distributors. NVIDIA Corporation was founded in 1993 and is headquartered in Santa Clara, California.
