In the fourth quarter, Nvidia (NVDA) – Get NVIDIA Corporation Report The stock was at an all-time high. Graphics-chip specialist joined by Advanced Micro Devices (AMD) – Advanced Micro Device, Inc. Get the report And a handful of high quality growth stocks.
We faced a divided market at that time. The S&P 500 and Nasdaq were at all-time highs, despite several significant gains as stocks traded at the beer-market level.
Through the volatility we’ve seen so far this year, most semiconductor companies are doing well. Qualcomm (QCOM) – Get Qualcomm Inc reportTexas Instrument (TXN) – Get Texas Instruments Inc. reportTaiwan Semiconductor (TSM) – Taiwan Semiconductor Manufacturing Company Limited Receive Report And on semiconductor (On) – Get Semiconductor Corporation Report It is difficult to report everything with a strong outlook.
Probably the most related to Nvidia is AMD, which has a strong quarterly report and better-than-expected guidance. This indicates good for Nvidia, which reports earnings next week.
Excluding positive prospects, Nvidia stock fell 55% from the top.
We’ve probably seen less, but probably not – no one knows for sure.
All I can say is that it may be wise to start stockpiling long-term Nvidia bulls as it has been cut in half from high. Although stocks and valuations have been down, expectations were not met.
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Indeed, revenue estimates for this year and next continue to climb. Can we hit the bottom and turn high from here?
Nvidia Stock Trading
Weekly chart of Nvidia stock.
Chart courtesy of TrendSpider.com
At the height, the assessment was a reasonable argument for being bearish on Nvidia. With stocks below 50%, however, that argument seems to have run its course. (Of course, this does not mean that the market will continue to sell stocks indiscriminately.)
If so, bulls need to keep an eye on the $ 150 to $ 160 area. Not only has Nvidia stock recently bottomed out in this area, it is also a significant area of ​​confluence.
We have 61.8% retracement, measured from all-time highs to March 2020 Covid-19 lows, as well as 161.8% downside extensions from the current range. It is also an earlier breakout area from 2021.
If this zone fails as support and semiconductor space – which has shown some modest strength lately – returns to pressure, Nvidia stock may be looking for a test in the $ 125 to $ 128 range. Just below this area is the 200-week moving average.
On the contrary, it is clear that the $ 182.50 level is causing some problems for Nvidia stocks. If the stock can clear this level and stay above it, the $ 200 and 10-week moving averages are within reach.
Above $ 210 and vice versa really open, possibly in a 21-week and 50-week moving average game, currently around $ 230 to $ 235.
