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XForceGlobal
Apr 20, 2020 1:48 PM

Nvidia: Reverse Head and Shoulders Pattern Analysis 1D (Apr. 20) Long

NVIDIA CorporationNASDAQ

Description

X FORCE GLOBAL ANALYSIS:


In this analysis, we take a look at both technicals and fundamentals for Nvidia (NVDA)

Technicals

- We see a text book reverse head and shoulders pattern
- It seems as though the right shoulder has also finished forming, and our neckline remains around our support at $285
- Our all time high resistance sits at $315
- The Relative Strength Index is forming higher lows, and continues in an uptrend as a sign of trend strength
- The Moving Average Convergence Divergence (MACD) also shows increasing bullish histograms after a golden cross, indicating signs of momentum
- Normally, a breakout from the reverse head and shoulders pattern is resulted by an increase by the same degree of the depth of the neckline

Fundamentals

- The operating margin for Nvidia sits at 26.10%, gross at 62%, and net at 25.6.
- Nvidia generates considerably more profit, after expenses are accounted for, compared to its counterparts


What We Believe

Overall, Nvidia shows bullish technicals, and sound fundamentals. As a solid stock, it appears that Nvidia could move on to test new all time highs.

Trade Safe.
Comments
thausler
I wouldn't buy this with your neighbor's money. Way overpriced.
tonystarrrk
Totally in agreement with assessment. Btw nice catch IHS pattern. Sitting on trendline support as well as structural support rn. $331 and some change easily. Break that, $388.90 before reversal and entry for short position.
XForceGlobal
@tonystarrrk, Thank you for your insight :)
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