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How High Can Nvidia Go From Here?

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?

Nvidia and Advanced Micro Gadgets are holdings in Jim Cramer’s Action Signals PLUS member club. Want to be alerted before Jim Cramer buys or offers NVDA or AMD? Find out more now.

Trading Nvidia

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.

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