Technical Analysis – Nvidia set to erase pullback, new record high in sight?
August 16, 2023 10:28 am
Nvidia’s stock has experienced an exponential surge since the beginning of the year, gaining around 250% before experiencing a minor pullback. Despite falling below its 50-day simple moving average (SMA) for the first time in eight months, the stock price rebounded strongly and appears to be on track to revisit its recent all-time high.
The momentum indicators are endorsing this latest jump. Specifically, the stochastic oscillator is ascending steeply after posting a bullish cross in the oversold zone, while the RSI reclaimed its 50-neutral mark.
Should the share price extend its recent rebound, there is no prominent resistance territory ahead of the recent record peak of 478.50. A violation of that level would send the price into uncharted waters, where the 500.00 psychological mark might prove to be a tough barricade for buyers to conquer.
Alternatively, if the recovery falters and the price reverses lower, the recent support of 403.00 may act as the first line of defence. Diving lower, the stock could challenge 365.80, which is the upper end of a positive price gap registered on May 25. Sliding beneath that floor, the bears could attempt to fill that gap and push the price below 317.60.
In brief, Nvidia’s share price appears ready to erase its recent correction and edge higher to re-test its record high. Moreover, as its earnings announcement is scheduled for next week, traders should be aware that the stock could be entering a period of heightened volatility.
Nvidia’s stock has experienced an exponential surge since the beginning of the year, gaining around 250% before experiencing a minor pullback. Despite falling below its 50-day simple moving average (SMA) for the first time in eight months, the stock price rebounded strongly and appears to be on track to revisit its recent all-time high.
The momentum indicators are endorsing this latest jump. Specifically, the stochastic oscillator is ascending steeply after posting a bullish cross in the oversold zone, while the RSI reclaimed its 50-neutral mark.
Should the share price extend its recent rebound, there is no prominent resistance territory ahead of the recent record peak of 478.50. A violation of that level would send the price into uncharted waters, where the 500.00 psychological mark might prove to be a tough barricade for buyers to conquer.
Alternatively, if the recovery falters and the price reverses lower, the recent support of 403.00 may act as the first line of defence. Diving lower, the stock could challenge 365.80, which is the upper end of a positive price gap registered on May 25. Sliding beneath that floor, the bears could attempt to fill that gap and push the price below 317.60.
In brief, Nvidia’s share price appears ready to erase its recent correction and edge higher to re-test its record high. Moreover, as its earnings announcement is scheduled for next week, traders should be aware that the stock could be entering a period of heightened volatility.
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