NVIDIA CORP (NASDAQ:NVDA) was identified as a Technical Breakout Setup Pattern by our stockscreener. Such a pattern occurs when we see a pause in a strong uptrend: after a strong rise the stock is consolidating a bit and at some point the trend may be continued. Whether this actually happens can not be predicted of course, but it may be a good idea to keep and eye on NASDAQ:NVDA.
Technical Analysis Observations
ChartMill assigns a Technical Rating to every stock. This score ranges from 0 to 10 and is updated daily. The score is determined by evaluating multiple technical indicators and properties.
Overall NVDA gets a technical rating of 9 out of 10. Both in the recent history as in the last year, NVDA has proven to be a steady performer, scoring decent points in every aspect analyzed.
- Both the short term and long term trends are positive. This is a very positive sign.
- When comparing the yearly performance of all stocks, we notice that NVDA is one of the better performing stocks in the market, outperforming 96% of all stocks.
- NVDA is one of the better performing stocks in the Semiconductors & Semiconductor Equipment industry, it outperforms 90% of 104 stocks in the same industry.
- NVDA is currently trading near its 52 week high. This is a good sign, certainly because the S&P500 Index is not trading near new highs.
- In the last month NVDA has a been trading in the 262.20 - 290.58 range, which is quite wide. It is currently trading in the middle of this range where prices have been consolidating recently, this may present a good entry opportunity, but some resistance may be present above.
How does the Setup look for NASDAQ:NVDA
ChartMill also assign a Setup Rating to every stock. With this score it is determined to what extend the stock has been trading in a range in the recent days and weeks. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. NASDAQ:NVDA scores a 8 out of 10:
Besides having an excellent technical rating, NVDA also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is a support zone below the current price at 274.82, a Stop Loss order could be placed below this zone. Another positive sign is the recent Pocket Pivot signal.
How can NASDAQ:NVDA be traded?
For a potential trade one would typically wait until the stock breaks out of the consolidation zone to enter the stock and it could be sold again for a loss when it would fall back below the zone.
This article should in no way be interpreted as trading advice. You should always make your own analysis and trade or not trade based on your own observations and style. The article is based purely on some technical observations.
More breakout setups can be found in our Breakout analyzer.