Shares of the graphics chip specialist bottomed out on October 13. Since then, the stock has rallied in seven of the past eight weeks and is up more than 57% in that time period.
While AMD stock has since fallen 14% adjust In addition to the highs from earlier this month, Nvidia stock hit a new high on Friday.
When we last looked At Nvidia, 200 days is the main upside target. We’re there now, so let’s review the charts.
Nvidia stock trading
Last week, Nvidia stock price trend seemed to be slowing down. Stocks opened below the 21-day moving average and the recent uptrend (blue line).
Nvidia stock looks like it could pull back to the $150 lows or even potentially as low as $140 and fill the gap at $142.11.
Instead, the stock broke out and pushed the stock to its highest level since August.
with CPI Reports Tuesday and the Fed’s rate decision Wednesday, there’s the potential for all sorts of moves this weekend — including in Nvidia stock.
Here is how I would proceed.
A close above last week’s high of $175.83 — and therefore the 200-day moving average — opens the door for the 50-week moving average to be bearish at $185.50, according to the report. Following is the previous resistance area between $190 and $195.
On the other hand, breaking last week’s low of $156.67 not only triggered a weekly bearish rotation but also put Nvidia stock below the 10-day and 21-day moving averages.
That could very well open the door for a drop to fill the gap near $142. Around that level, Nvidia stock also finds a 50-day moving average, a 50% retracement, and a daily VWAP gauge.
For active bulls, this will be a reasonable buying opportunity, with the clear warning that the overall market will not tolerate a full-blown crisis.