NVDA clearly had a stellar run since its dip in 2019, however since late 2020 the stock seem to have lost a bit of steam and started consolidating above $500. Avg. trading volume started fading and the stock went into a sideways trading pattern.
Clearly the crypto frenzy and the new GPU lineup should boost the companies revenues, but we all know the story; delivery delays on the GPU and a strong AMD competition somewhat seem to have spoiled the party...
If we believe the analyst consensus the stock should trade around $591 which is the all time highs which the stock tested in September and November. So is the recent pullback into the $520 and upcoming earnings worth buying?
Technicals;
+ long term uptrend since 2019 followed by a consolidation in late 2020 and early 2021
+ Consolidation has tightly followed Fibonacci support and resistance levels (predictability)
+ Wedge formation and Bolling Band squeeze indicates potential breakout
+ Volume on positive days > negative days
+/- MACD at potential bullish crossover point
+/- RSI indicates mildly oversold territory
- Upside of 14% to target price seems little compared of the YTP performance
Personally I will look for a quick trade with entry around current levels and a tight SL to prevent unnecessary risks;
Buy Limit $520 GTD
SL $497
TP $591
Clearly the crypto frenzy and the new GPU lineup should boost the companies revenues, but we all know the story; delivery delays on the GPU and a strong AMD competition somewhat seem to have spoiled the party...
If we believe the analyst consensus the stock should trade around $591 which is the all time highs which the stock tested in September and November. So is the recent pullback into the $520 and upcoming earnings worth buying?
Technicals;
+ long term uptrend since 2019 followed by a consolidation in late 2020 and early 2021
+ Consolidation has tightly followed Fibonacci support and resistance levels (predictability)
+ Wedge formation and Bolling Band squeeze indicates potential breakout
+ Volume on positive days > negative days
+/- MACD at potential bullish crossover point
+/- RSI indicates mildly oversold territory
- Upside of 14% to target price seems little compared of the YTP performance
Personally I will look for a quick trade with entry around current levels and a tight SL to prevent unnecessary risks;
Buy Limit $520 GTD
SL $497
TP $591
Comment:
Wedge held in yesterdays sell off.
MACD and RSI showing some weakness. Monitoring closely. Any further weakness could indicate a break to the downside in which case I would close out the position early.
MACD and RSI showing some weakness. Monitoring closely. Any further weakness could indicate a break to the downside in which case I would close out the position early.
Comment:
NVDA suffering amid the tech sell-off. Still holding my position as I believe NVDA is a good longterm play. Thinking of adding a small position to avg. down my entry price. However I would want to see a trend reversal first.
Maintaining SL and TP for now.