Will Nvidia Come to Life?Nvidia has been largely quiet as the S&P 500 pushes to new highs, but will that change?
The first pattern on today’s chart is the convergence of the 50- and 100-day simple moving averages. On one hand, this highlights the semiconductor giant’s longer-term uptrend. On the other, it highlights intermediate-term neutrality. That could make some trend followers look for the longer-term direction to resume.
Second, the $117 zone was a weekly low in mid-June and support a couple of times in the subsequent month. The stock just formed an inside week in the same area. That may suggest prices are tightening before a potential move.
Third, MACD has started rising and the stock has mostly been above its 21-day exponential moving average. Those patterns may reflect increased bullishness in the short-term.
Finally, you have the bigger picture of the broader market breaking out as the Federal Reserve gets dovish. With this year’s most prominent gainer more than 15 percent below its all-time, some investors may look for money to return to such a leader as yearend comes within view.
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