All about the after-hours action in NVIDIA (NVDA). Shares spent the day approaching the top of last Wednesday’s massive range. After the news, it’s come down to the bottom of that range, eventually settling around $105. That leaves not only the intermediate downtrend intact, but now has a fundamental worry to carry along with it.
While $5.5 billion isn’t going to make or break a company like NVIDIA, it’s certainly not a bullish wind in its sales. The news adds further uncertainty to not only the broad market but the stock itself. The waffling back-and-forth from the Administration certainly isn’t helping things. There was a report last week of a meeting at Mar-A-Lago where there was supposed to be the all-clear for H20 chips. The reversals are the real problem here. The market does not like this sort of fog.
Moving Averages: Bartosiak starts by examining the stock's moving averages, such as the 50-day and 200-day moving averages. He points out the significance of crossovers and divergences between these averages, which can indicate potential trend changes.
Support and Resistance Levels: Bartosiak identifies key support and resistance levels on the chart. These levels act as barriers that the stock price must breach or hold above, providing traders with critical decision points.
Chart Patterns: He discusses chart patterns like head and shoulders, cup and handle, or flags, and their relevance in predicting future price movements. These patterns can offer valuable insights into potential bullish or bearish trends.
Volume Analysis: He emphasizes the importance of volume analysis in confirming price trends. An increase in trading volume during a breakout or breakdown can validate the significance of a price move.
Dave Bartosiak's technical analysis approach adds depth to our understanding Nvidia’s stock chart. By paying attention to moving averages, support and resistance levels, chart patterns, technical indicators, and volume, he equips investors with a comprehensive toolkit for making well-informed decisions in the stock market. Remember, while technical analysis is a valuable tool, it's important to consider other factors like fundamental analysis and market sentiment before making investment choices.
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NVIDIA Corporation (NVDA): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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