Wondering if you can buy NVIDIA stock at this moment? In this article we look at Nvidia through technical analysis to see if the charts are conducive.
NVIDIA has been a steady winner over the years but this does not mean you should buy it at any moment. Ideally we want to purchase this stock when it is about to go higher again.
Stocks can change in a heartbeat and the charts taken are as of March 23 2022. So if you are reading this in the future, do take that into consideration.
Nvidia actually had a very very nasty sell off and with a drop of more than 20%, it could be said to have entered into a bear market of its own. However, it seems to be able to find support at the rising 200 MA. It did drop below the 200 MA but quickly rose back above it several times.
There are a few positive things going for it. First of all, the stock is perhaps making a double bottom. Actually there are multiple lows and the stock seems to find support at around $210. So this is definitely a very significant area. The stock has also gone back above a downtrend line and from my experience, this could be a solid sign that is wants to bottom.
Nvidia has also traded back above its 20 MA and 50 MA which is another sign that it wants to go back up.
There is a congestion resistance above which I have highlighted in red but the presence of a double bottom and breaking of a downtrend line could help to overcome this in the future.
For traders or investors, this could be a good time to buy some Nvidia stock with a close eye on the $210 area. As long as the stock stays above this price area, then it is very likely to move higher in the future.
Let us take a look at the weekly chart of Nvidia. First of all, I want you to notice the support areas that I have highlighted in green. There are two layers actually and these support areas can actually help to support the stock.
This explains why the stock had multiple lows in the daily chart and bounce back up once it hits the $210 area. Support was there to hold it up.
It was able to find support at the rising weekly 50 MA which is the blue line. The last time the stock dropped to that area, it went back up again. And that was by a lot.
The presence of weekly bottoming tails at the rising weekly 50 MA tells us that the stock rejected to go lower. The weekly stochastics is oversold which hints of a bullish move upwards. Another thing is that the weekly MACD may be about to give a buy signal. This could help the stock higher in the weeks to come if the buy signal materializes.
A large green candle appeared last week. This signals a genuine interest from buyers. You might want to watch the large green candle carefully. Usually, if there is a correction (and that may happen) and the stock does not fall below the middle of the large green candle, this will tell us that the bulls are firmly in control. The stock is likely to move higher if that happens.
For shorter term timing, it would be wise to consult the 60 min chart. The best time to buy the stock for trading was when it broke a 60 min downtrend line after it made a higher low. One would be in the green if the purchase was done at that time.
So far the stock is still in an hourly uptrend. It is trading sideways and may correct because of the resistance on the left. But there is support below which I have highlighted in green and as long as the stock stays above this green area, then it is likely to continue to go higher.
Well, a correction may not happen at all. The stock may trade sideways a bit and breakout higher. I have drawn a box to help you see it and if a sideways trading happen and the stock breaks above the consolidation, then it is likely to continue to move higher.
I hope this analysis has helped you to understand the stock more and hopefully it helps you in your decision to buy Nvidia stock.
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