Nvidia Perching on Big Outside Candle
Nvidia is one the biggest gainers in the S&P 500 over the past year, trailing only 
Advanced Micro Devices among the semiconductors. Now the coronavirus pullback may be providing an opportunity for momentum buyers.NVDA's chart has a few interesting patterns.
First, it never closed below its 50-day simple moving average (SMA) amid last week's intense volatility. That places it among only a handful of stocks in the current market that remained above that level.
Second, it's held a rising trend line that began in August.
Third, NVDA formed a bullish engulfing candle on Friday. It's now holding support at the top of that candle.
Finally, stochastics are near oversold conditions. This oscillator has successfully marked turns for NVDA in the past.
The company's last earnings report on February 13 beat estimates across the board. Investors were especially impressed by NVDA's growth in AI/machine-learning chips. Analysts followed with a stream of positive notes, price target hikes and upgrades. The firms include Bernstein, RBC Capital, Evercore ISI, Cowen and Jefferies.
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