NVDA - Time to Buy?
NVDA clearly had a stellar run since its dip in 2019, however since late 2020 the stock seem to have lost a bit of steam and started consolidating above $500. Avg. trading volume started fading and the stock went into a sideways trading pattern.
Clearly the crypto frenzy and the new GPU lineup should boost the companies revenues, but we all know the story; delivery delays on the GPU and a strong AMD competition somewhat seem to have spoiled the party...
If we believe the analyst consensus the stock should trade around $591 which is the all time highs which the stock tested in September and November. So is the recent pullback into the $520 and upcoming earnings worth buying?
Technicals;
+ long term uptrend since 2019 followed by a consolidation in late 2020 and early 2021
+ Consolidation has tightly followed Fibonacci support and resistance levels (predictability)
+ Wedge formation and Bolling Band squeeze indicates potential breakout
+ Volume on positive days > negative days
+/- MACD at potential bullish crossover point
+/- RSI indicates mildly oversold territory
- Upside of 14% to target price seems little compared of the YTP performance
Personally I will look for a quick trade with entry around current levels and a tight SL to prevent unnecessary risks;
Buy Limit $520 GTD
SL $497
TP $591
Clearly the crypto frenzy and the new GPU lineup should boost the companies revenues, but we all know the story; delivery delays on the GPU and a strong AMD competition somewhat seem to have spoiled the party...
If we believe the analyst consensus the stock should trade around $591 which is the all time highs which the stock tested in September and November. So is the recent pullback into the $520 and upcoming earnings worth buying?
Technicals;
+ long term uptrend since 2019 followed by a consolidation in late 2020 and early 2021
+ Consolidation has tightly followed Fibonacci support and resistance levels (predictability)
+ Wedge formation and Bolling Band squeeze indicates potential breakout
+ Volume on positive days > negative days
+/- MACD at potential bullish crossover point
+/- RSI indicates mildly oversold territory
- Upside of 14% to target price seems little compared of the YTP performance
Personally I will look for a quick trade with entry around current levels and a tight SL to prevent unnecessary risks;
Buy Limit $520 GTD
SL $497
TP $591
Note
Stock trying to breakout to the upside of current wedge formation. A confirmation over the coming trading days would indicate further upside. Upcoming earnings will be key. Delay in new RTX models still major concern with regards to earnings expectations. Maintaining SL and TP for now.
Note
Wedge held in yesterdays sell off. MACD and RSI showing some weakness. Monitoring closely. Any further weakness could indicate a break to the downside in which case I would close out the position early.
Note
NVDA suffering amid the tech sell-off. Still holding my position as I believe NVDA is a good longterm play. Thinking of adding a small position to avg. down my entry price. However I would want to see a trend reversal first.
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