NVDA closing above the bearish channel

4월 26일

Why the stock gained today?
• NVDA is a good defensive stock to protect against high interest rates.
• Competitor intel losing part of the market and disappointed Q2 forecast
• AI demand from MSFT, GOOG, META, TSLA that just revealed an increase in capex this week.

NVDA is backed up after last week sell-off, could it last ?
• NVDA broke the bearish channel today and importantly closed above which creates bull signal.
• MAs: The stock was trading below major moving averages (MAs) on 1D chart last week, but NVDA finally closed above 20MA, 50MA, 9EMA today.
• Volume: a good volume appeared after trading above 50MA, this could create a support for next week. Nevertheless, today's volume is still lower than last month. We need to see a bigger volume next week to create a bullish trend.
• Performance: The stock gained 6.18% today and 15,14% this week which shows a strong rebound after last week. On a weekly-chart, the candle is inside last week candle, which shows that bulls don't have yet the control on.

From now, we are not yet in a stable bullish trend, but today we crossed major resistance levels that can be used as supports for next week. Economic data and fed speaks will determine the stock direction. A greater volume is indeed important to maintain a bullish trend.

5월 6일

노트

Technical analysis:
MACD & RSI are showing bullish signals. The stock is trading above the moving averages, including the 50MA on the 1-day chart. The resistance at 904 was crossed and maintained today. The next resistance levels are at 927, 930, and mostly at 950 (the opening price on 08/05). It appears that NVDA is heading towards its all-time high (ATH) despite light trading volume. The upcoming events include Apple's new product launch event tomorrow, and ARM's earnings report on Wednesday. In terms of economic data, jobless claims will be released on Thursday, followed by the Michigan sentiment index on Friday. Additionally, various Federal Reserve representatives will speak throughout the week.

Updated Idea:
Since April 26th, NVDA has experienced a decline, consolidation, and then initiated a new bullish trend. The stock may remain volatile, as indicated by the CNN Fear & Greed Index, which currently stands at 40, suggesting that fear surpasses greed. Furthermore, the company is scheduled to report earnings on May 22nd after the market close. Investors, including funds, are optimistic ahead of the earnings report, given that major tech companies are planning to increase capex, indicating strong demand for NVDA GPUs.