NVIDIA | A Second Technical Entry Opportunity This Year

15 Okt

• NVIDIA has presented two key technical entry points for investors in 2024.
  
• The first entry came during a correction in early August around the $100 level, which was shared on my TradingView channel.
• The second opportunity is now, following last week’s close at an all-time high level.
  

After NVIDIA's strong rally in 2024, there have been two technical opportunities to enter the stock. The first was during the correction in early August around the $100 mark, which I highlighted in my earlier TradingView post.

The second opportunity has emerged now, as last week's closing price marked the highest in history. While the stock hasn't officially hit an all-time high yet, it has broken through the critical $130 resistance level, which had been a barrier for the past four months. This breakout puts the stock in what is often called "open waters," where there is no significant resistance overhead.

It's important to note that while this presents a potential technical buy, fundamentals play a key role here. The resistance of four months is relatively short in terms of a breakout, and from a psychological perspective, buying at current highs can feel doubting. While the technicals suggest a reasonable entry, it’s crucial to have a clear thesis, a long-term holding plan, and solid fundamental research.

At this point, I would say that entering the stock now carries more risk. It’s not a good entry point for short-term gains, and I wouldn’t recommend an "all-in" approach at these levels. Only investors who are willing to add to their position during a pullback, and who have done their fundamental homework should consider buying now with a long-term perspective.


Summary

NVIDIA has presented two technical buying opportunities in 2024, with the latest one emerging after a modest breakout above $130. While there is potential for further gains, such as a move toward $150-$170, this is a riskier entry, especially for short-term traders. Investors should consider the current market environment, do their fundamental research, and only buy if they’re prepared to hold for the long term or add to their position in case of a pullback.


Regards,
Vaido