Market Analysis: NVDAMarket Analysis: NVIDIA
Over the past three to four months, NVIDIA Corporation ( NASDAQ:NVDA NVDA) has demonstrated solid performance, with its stock price increasing by approximately 4.96%. This steady growth reflects the company’s strong position in the technology sector, driven by its dominance in GPU production, AI advancements, and cloud computing.
The release of its latest financial results and continued demand for AI-related technologies have kept investor confidence high. However, market volatility and broader concerns in the tech sector may have tempered the pace of its gains. Overall, NVDA remains a key player to watch, especially as AI adoption accelerates globally.
Why has the title been stuck in the same range for over 90 days?
Let's always keep in mind that NVDA, from the low it reached in 2022, has now experienced an increase of about 1200%, so a sideways phase is completely normal, if not expected!
Let’s take a look at the chart since May 25, 2023 (599 days // 317%)
We can observe how the uptrend has always been accompanied by a very important trendline, which has now been retested and invalidated, all marked by a particularly unfavorable signal: a candle that opens higher, setting a new all-time high, and closes in the negative.
Nonetheless, NVDA has consistently exhibited a similar pattern – large uptrends, leaving gaps open almost everywhere, and long sideways phases, which usually lead to a breakout driven by earnings announcements.
Let’s look at the examples the market provides us:
We have the first upward move (1st), driven by earnings results that cause a gap up of about 20%, followed by a wide trading range in which the price remains trapped. Later (2nd), a strong bullish phase, and finally another sideways phase (3rd), all with very wide ranges!
Now, the current zone is a difficult one to analyze because initially it seemed to be a bullish zone, but now appears to be more of a consolidation…
So, the situation we find ourselves in now is another moment for a buy or a trend change? Let us know your thoughts in the comments!
