NVDA closing above the bearish channelWhy the stock gained today?
• NVDA is a good defensive stock to protect against high interest rates.
• Competitor intel losing part of the market and disappointed Q2 forecast
• AI demand from MSFT, GOOG, META, TSLA that just revealed an increase in capex this week.
NVDA is backed up after last week sell-off, could it last ?
• NVDA broke the bearish channel today and importantly closed above which creates bull signal.
• MAs: The stock was trading below major moving averages (MAs) on 1D chart last week, but NVDA finally closed above 20MA, 50MA, 9EMA today.
• Volume: a good volume appeared after trading above 50MA, this could create a support for next week. Nevertheless, today's volume is still lower than last month. We need to see a bigger volume next week to create a bullish trend.
• Performance: The stock gained 6.18% today and 15,14% this week which shows a strong rebound after last week. On a weekly-chart, the candle is inside last week candle, which shows that bulls don't have yet the control on.
From now, we are not yet in a stable bullish trend, but today we crossed major resistance levels that can be used as supports for next week. Economic data and fed speaks will determine the stock direction. A greater volume is indeed important to maintain a bullish trend.