NVDA is one of the hottest semiconductor stocks today. This is a technical outlook for the stock's price. Is it in an uptrend or a downtrend. Where is the support and resistance?
NVDA just reported earnings and the earnings was a good one. From the pre market data we can expect a gap up today. The stock is still in a daily uptrend and it is above its rising 20 MA which is something bullish.
What I want you to do is to pay attention to the support area above. As long as the support area holds then it is very likely that NVDA will move higher in the short term.
The declining volume as the stock consolidates seem to point to a bullish move.
On the other hand, if you see the stock dropping below the support area, then we could see the stock meeting the rising 20 MA. This is where we will need to lookout for any sign of potential reversal.
If we take a look at the 60 min chart of NVDA we can see that the stock was in a trading range for a few days. If NVDA gaps up above the blue area and stays above it then we will likely see the stock going up soon.
On the other hand, if NVDA drops below the green support area then we could see some correction and selling ahead.
NVDA not too long ago broke out of a daily ascending triangle which I have drawn on the chart above. As you probably know, the top of the ascending triangle will be a support area. NVDA's stock price has corrected to this area and this could be a possible area of support.
The chart above is the weekly chart of NVDA. The stock is still in a long term uptrend. It is above the rising weekly 20 MA and the weekly 50 MA which means the stock is in a bullish long term uptrend.
Before the stock broke out of the daily ascending triangle, it formed a weekly bottoming tail. This BT is a reference point for us. As long as the stock stays above the low of the BT, then we should be going up in the long run. Sometimes a stock can find support from its weekly rising 20 MA.
The stock as of today looks like it is forming a weekly bottoming tail and if by Friday it does form a nice weekly bottoming tail, then this could be a bullish signal for the stock.
NVDA is still in a nice uptrend.
A picture of power. The stock is still above the rising 20 MA and 50 MA and the 200 MA is also sloping upwards. Therefore one should continue to be bullish as long as it is above the 20 MA and 50 MA.
Recently this stock broke out of a daily box.
Top of the box will be new support area.
The chart above is the daily chart of NVDA.
As you can see, the stock is in a nice daily uptrend. The drop below its 50 MA in December 2017 caused some concerns. Around that time I remember that certain people were very bearish about the stock.
Yes it had a nasty correction but it found support around the $185 area.
The stock soon formed what we call an ascending triangle pattern and broke out of the pattern to go higher.
The stock also went back above its 50 MA. A healthy stock will not fall below its rising 50 MA for long. NVDA continued to move up and broke above its previous highs.
As some of you are aware, a previous high once broken will now act as support. What was once resistance now becomes support. NVDA consolidated for a while at support and then broke higher.
At this moment, if NVDA continues to stay above the support area, the stock is very likely to continue to move up. The trend for the stock is up and there is ample support below.
The stock is trading above its rising 20 MA, 50 MA and 200 MA. This is an indication of a strong uptrend. There is a bullish 20 cross 50 MA lately. The last time the stock had a bullish cross was in May 2017. Since then the stock has moved up by more than 80%.
Well if history can repeat itself, NVDA might continue to move up by quite a lot.
The chart above is the weekly chart of NVDA.
NVDA is in an extremely strong weekly uptrend. It has stayed above the weekly rising 20 MA and 50 MA most of the time. Investors should continue to be bullish on this stock when it is staying above the rising 50 MA.
You should not worry too much about a nasty big drop as there is lots of support below. The boxes I have drawn are long term support area.
Back when NVDA had a recent correction, one member in my US Market Trading group asked me if NVDA was overbought. I had a bullish bias on NVDA because it was hitting the weekly rising 20 MA.
You see, when the weekly trend is up, the odds of the stock moving higher is very good. As a trader, we need to pick spots in an uptrend to buy the stock.
Either through buying the dips or breakouts or continuation patterns.
Last of all, let us look at the monthly chart of NVDA.
This stock had broken out of a monthly triangle and moved up from there.
Chart patterns are very beneficial even in long term charts.
Since the trend is up, very long term investors should still continue to be bullish on this stock. Stay with the trend till it ends. Don't worry too much. As long as NVDA stays above the monthly 20 MA, the odds of it moving higher is very good.
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