Nvidia continues to go to all-time highs. Here’s a take a look at where the stock might go from here.
Nvidia (NVDA) – Get Report may be down nearly 1% on Friday however recently the stock has been on fire.
It’s still up more than 1% for the week and will finish higher for the 3rd consecutive week.
Helping drive the stock’s existing rally was the business’s GTC event, where a keynote presentation from CEO Jensen Huang assisted release a flood of buying amongst investors and drove the stock to brand-new all-time highs.
Nvidia has actually drawn the appreciation of analysts too. For example, Raymond James analysts just recently raised their price target to $750 from $700 as they eye a rebound in business spending and Nvidia’s new chip.
We have done well with Nvidia’s technicals, too.
In March, I analyzed the stock as it penetrated for a bottom. Then previously this month, the stock offered bulls a monthly-up rotation, setting the phase for an explosive rally over the prior 52-week highs near $615.
Advanced Micro Gadget (AMD) – Get Report also has been trading well, most likely on the back of Nvidia’s momentum. Can Nvidia continue its run?
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Look at the method Nvidia stock faked out investors by breaking listed below the 200-day moving average, however masterfully holding the 50-week moving average in early March.
After that, shares took off greater, surging through $590 resistance earlier today, then pressing through the previous high. Since then, Nvidia stock has actually just constructed on that momentum.
From here, bulls need to not always dismiss a continuation higher. While we have actually seen a big relocation in a brief period of time, Nvidia also gave us a multi-quarter consolidation stage. So the relocation could last a lot longer than some currently anticipate.
On the benefit, a go up through $650 needs to put the 161.8% extension on traders’ radar up near $663. Above that opens the door to the $700 level and the two-times extension simply above that.
On the disadvantage, I would truly like to see $615 act as assistance, in addition to the 10-day moving average. If both steps fail, bulls require to see the $590 level serve as support. If it does not, this stock will lose all of its short-term momentum.
Eventually, traders may think about using a longer term rate target of $750 to $780 if Nvidia can maintain its bullish momentum. The latter end of that range enters into play near the 261.8% extension.