What Technical Analysis Says Nvidia Stock Might Do From Here
Nvidia 
NVDA is an interesting stock in that it’s up almost 185% over 12 months as of July 17 -- but has rallied and sold off over the past two months. So, what now?
Let’s see what the stock’s chart as of July 17 might show us:
The first thing you might notice is that NVDA hit a “basing period” from March into May, as denoted by the two pink horizontal lines above.
The stock then broke out around May 21, although a sell-off followed beginning around June 21.
This sell-off has been supported by the 38.2% Fibonacci retracement level of the earlier breakout, as denoted by the thick purple line at right in the above chart. It also looks to the stock's 50-day Simple Moving Average (SMA), as denoted by the thin blue line above.
Meanwhile, Nvidia’s Relative Strength Index (RSI) has moved into the neutral zone -- not even close to being in technically overbought or oversold territory – as shown in the blue box above.
Lastly, Nvidia’s daily Moving Average Convergence/Divergence chart (or “MACD”) is coming off of extended levels in June, with the histogram of the stock’s nine-day Exponential Moving Average (EMA) in negative territory for about a month now, as denoted by the green box above.
Separately, the MACD’s 12-day EMA remains below the 26-day EMA, as also seen in the green box above. This is historically a bearish pattern.
All in, NVDA might be trying to develop a new base of consolidation at recent levels before deciding on whether it's time to break out above the $141.40 level or head back down to its 200-day Simple Moving Average (the thin red line in the chart above).
But a word of caution. The stock might also be developing a so-called “double top” pattern, which could be seen as a pattern of bearish reversal.
Full disclosure: The author of this article was long Nvidia stock and Nvidia calls as of the time of this writing.
This presentation discusses technical analysis, other approaches, including fundamental analysis, may offer very different views. The examples provided are for illustrative purposes only and are not intended to be reflective of the results you can expect to achieve. Specific security charts used are for illustrative purposes only and are not a recommendation, offer to sell, or a solicitation of an offer to buy any security. This presentation discusses technical analysis, other approaches, including fundamental analysis, may offer very different views. The examples provided are for illustrative purposes only and are not intended to be reflective of the results you can expect to achieve. Specific security charts used are for illustrative purposes only and are not a recommendation, offer to sell, or a solicitation of an offer to buy any security. Past investment performance does not indicate or guarantee future success. Returns will vary, and all investments carry risks, including loss of principal. Moomoo makes no representation or warranty as to its adequacy, completeness, accuracy or timeline for any particular purpose of the above content. Moomoo is a financial information and trading app offered by Moomoo Technologies Inc. In the U.S., investment products and services on Moomoo are offered by Moomoo Financial Inc., Member FINRA/SIPC.
TradingView is an independent third party not affiliated with Moomoo Financial Inc., Moomoo Technologies Inc., or its affiliates. Moomoo Financial Inc. and its affiliates do not endorse, represent or warrant the completeness and accuracy of the data and information available on the TradingView platform and are not responsible for any services provided by the third-party platform.
NVDA is an interesting stock in that it’s up almost 185% over 12 months as of July 17 -- but has rallied and sold off over the past two months. So, what now?Let’s see what the stock’s chart as of July 17 might show us:
The first thing you might notice is that NVDA hit a “basing period” from March into May, as denoted by the two pink horizontal lines above.
The stock then broke out around May 21, although a sell-off followed beginning around June 21.
This sell-off has been supported by the 38.2% Fibonacci retracement level of the earlier breakout, as denoted by the thick purple line at right in the above chart. It also looks to the stock's 50-day Simple Moving Average (SMA), as denoted by the thin blue line above.
Meanwhile, Nvidia’s Relative Strength Index (RSI) has moved into the neutral zone -- not even close to being in technically overbought or oversold territory – as shown in the blue box above.
Lastly, Nvidia’s daily Moving Average Convergence/Divergence chart (or “MACD”) is coming off of extended levels in June, with the histogram of the stock’s nine-day Exponential Moving Average (EMA) in negative territory for about a month now, as denoted by the green box above.
Separately, the MACD’s 12-day EMA remains below the 26-day EMA, as also seen in the green box above. This is historically a bearish pattern.
All in, NVDA might be trying to develop a new base of consolidation at recent levels before deciding on whether it's time to break out above the $141.40 level or head back down to its 200-day Simple Moving Average (the thin red line in the chart above).
But a word of caution. The stock might also be developing a so-called “double top” pattern, which could be seen as a pattern of bearish reversal.
Full disclosure: The author of this article was long Nvidia stock and Nvidia calls as of the time of this writing.
This presentation discusses technical analysis, other approaches, including fundamental analysis, may offer very different views. The examples provided are for illustrative purposes only and are not intended to be reflective of the results you can expect to achieve. Specific security charts used are for illustrative purposes only and are not a recommendation, offer to sell, or a solicitation of an offer to buy any security. This presentation discusses technical analysis, other approaches, including fundamental analysis, may offer very different views. The examples provided are for illustrative purposes only and are not intended to be reflective of the results you can expect to achieve. Specific security charts used are for illustrative purposes only and are not a recommendation, offer to sell, or a solicitation of an offer to buy any security. Past investment performance does not indicate or guarantee future success. Returns will vary, and all investments carry risks, including loss of principal. Moomoo makes no representation or warranty as to its adequacy, completeness, accuracy or timeline for any particular purpose of the above content. Moomoo is a financial information and trading app offered by Moomoo Technologies Inc. In the U.S., investment products and services on Moomoo are offered by Moomoo Financial Inc., Member FINRA/SIPC.
TradingView is an independent third party not affiliated with Moomoo Financial Inc., Moomoo Technologies Inc., or its affiliates. Moomoo Financial Inc. and its affiliates do not endorse, represent or warrant the completeness and accuracy of the data and information available on the TradingView platform and are not responsible for any services provided by the third-party platform.
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