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.
What is the technical picture of NASDAQ:NVDA telling us.
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.
Taking everything into account, NVDA scores 8 out of 10 in our technical rating. In the last year, NVDA was one of the better performers, but we do observe some doubts in the very recent evolution.
- The long term trend is positive and the short term trend is neutral. The long term trend may just continue or reversal may be around the corner!
- When comparing the yearly performance of all stocks, we notice that NVDA is one of the better performing stocks in the market, outperforming 98% of all stocks. We also observe that the gains produced by NVDA over the past year are nicely spread over this period.
- NVDA is part of the Semiconductors & Semiconductor Equipment industry. There are 105 other stocks in this industry. NVDA outperforms 98% of them.
- NVDA is currently trading in the upper part of its 52 week range. The S&P500 Index is also trading in the upper part of its 52 week range, so NVDA is performing more or less in line with the market.
- In the last month NVDA has a been trading in the 403.11 - 473.95 range, which is quite wide. It is currently trading in the middle of this range, so some resistance may be found above.
For an up to date full technical analysis you can check the technical report of NVDA
How does the Setup look for NASDAQ:NVDA
Besides the Technical Rating, ChartMill also assign a Setup Rating to every stock. This setup score also ranges from 0 to 10 and determines to which extend the stock is consolidating. This is achieved by evaluating multiple short term technical indicators. NASDAQ:NVDA currently has a 8 as setup rating:
NVDA has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is a resistance zone just above the current price starting at 467.51. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 414.61, a Stop Loss order could be placed below this zone. Another positive sign is the recent Pocket Pivot signal.
Trading setups like NASDAQ:NVDA
One strategy to consider is waiting for the actual breakout to occur, where the stock breaks out above the current consolidation zone. Traders can then enter a buy position, anticipating further upward momentum. As a risk management measure, it is advisable to set a stop loss order below the consolidation zone.
Disclaimer: This article is not intended to provide trading advice. It is crucial to conduct your own analysis and consider your own observations and trading style when making investment decisions. The article solely presents technical observations and should not be relied upon as a sole basis for trading.
More breakout setups can be found in our Breakout screener.
Disclaimer
This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.