We've identified NVIDIA CORP (NASDAQ:NVDA) as a potential breakout candidate based on our stock screener's analysis. This breakout setup pattern suggests that after a strong uptrend, the stock is currently consolidating, potentially signaling a continuation of the trend. Keep an eye on NASDAQ:NVDA for further developments.
Technical analysis of NASDAQ:NVDA
Every day ChartMill assigns a Technical Rating to every stock. The score ranges from 0 to 10 and is determined by evaluating multiple technical indicators and properties.
We assign a technical rating of 9 out of 10 to NVDA. 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.
- The short term is neutral, but the long term trend is still positive. Not much to worry about for now.
- Looking at the yearly performance, NVDA did better than 99% of all other stocks. On top of that, NVDA also shows a nice and consistent pattern of rising prices.
- NVDA is one of the better performing stocks in the Semiconductors & Semiconductor Equipment industry, it outperforms 98% of 105 stocks in the same industry.
- 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 - 502.66 range, which is quite wide. It is currently trading in the middle of this range, so some resistance may be found above.
Check the latest full technical report of NVDA for a complete technical analysis.
Looking at the Setup
Next to the Technical Rating, the Setup Rating of a stock determines to which extend the stock is consolidating. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. For NASDAQ:NVDA this score is currently 8:
Besides having an excellent technical rating, NVDA also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. A pullback is taking place, which may present a nice opportunity for an entry. There is very little resistance above the current price. There is a support zone below the current price at 450.14, a Stop Loss order could be placed below this zone.
How to trade 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.
Please note that this article should not be construed as trading advice. The information provided is solely based on automated technical analysis and serves to highlight technical observations. It is important to conduct your own analysis and make trading decisions based on your own judgment and responsibility.
Our Breakout screener lists more breakout setups and is updated daily.
Disclaimer
Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.
