NVDA was the stock of the year and it is great company in my opinion. People mostly focus on their GPU market, but it's hard to ignore their strong hand into the hardware and software for A.I. Researchers love using (CUDA) software, which just saves time but it's also reason enough for it to be to-go choice for machine learning, deep learning etc. (GPU competition, CUDA accelerated)
Long story short, their dominance is questioned as Intel steps up their AI, among others. Moreover we are in the middle of production cycle so no much new products (beside 1080TI and Titan XP).There was also embedded computing boards etc, but not much there on the commercial side. While these could be a reason for slower growth, it's not the only case for the big drop recently. The downgraded rating from one analyst brought NVDA stock to small panic. The analyst rating was not on it's own the reason for the drop, but investors also took the opportunity to consider. I do think the growth rate was big too steep and the retrace was somewhat smaller than I expected.
For this month, my targets are 110+, ideal we see it break. I've 3 trades, 1 long from 98.8, which I'm probably looking to close at 120, 122, but I'm not expecting those this month. The two other buy positions I'm closing around 104 and 107 if we don't go back on track to110 fast enough. Levels of resistance seems to be 109.5 and support is around 100.2 to my observation. Some people around were saying during t week that we might see 95-96, which indeed seems possible, but in my opinion the support is too strong for the stock to close on those levels, however I do not rule out the possibility for 98-99 for couple of days this month.
Another level to look for is 104.50, since that was considered on the way down from 109. If we break that, I might consider opening another position there.
Any feedback is appreciated, it's my first 'serious' graph.
Long story short, their dominance is questioned as Intel steps up their AI, among others. Moreover we are in the middle of production cycle so no much new products (beside 1080TI and Titan XP).There was also embedded computing boards etc, but not much there on the commercial side. While these could be a reason for slower growth, it's not the only case for the big drop recently. The downgraded rating from one analyst brought NVDA stock to small panic. The analyst rating was not on it's own the reason for the drop, but investors also took the opportunity to consider. I do think the growth rate was big too steep and the retrace was somewhat smaller than I expected.
For this month, my targets are 110+, ideal we see it break. I've 3 trades, 1 long from 98.8, which I'm probably looking to close at 120, 122, but I'm not expecting those this month. The two other buy positions I'm closing around 104 and 107 if we don't go back on track to110 fast enough. Levels of resistance seems to be 109.5 and support is around 100.2 to my observation. Some people around were saying during t week that we might see 95-96, which indeed seems possible, but in my opinion the support is too strong for the stock to close on those levels, however I do not rule out the possibility for 98-99 for couple of days this month.
Another level to look for is 104.50, since that was considered on the way down from 109. If we break that, I might consider opening another position there.
Any feedback is appreciated, it's my first 'serious' graph.
Comment:
So we do come close to the bottom of 95. Maybe it's good opportunity for some to buy in on the stock, but it's important to see if that's the bottom or it will be further pushed down.
Comment:
Good move today, we bounced back to 98. The trade is still active.
Trade closed: target reached
Further, I also saw a lot of people sharing articles about investors concerns for NVDA being overbought. That wave of negative PR could also trigger further sell. Let's observe that 95 this week and see what's next.