• Investing
  • Stock
Round Table Thoughts
  • Economy
  • Editor’s Pick
Home Stock NVDA is Holding Strong: It’s Time to Think About Accumulating this Stock
Stock

NVDA is Holding Strong: It’s Time to Think About Accumulating this Stock

by April 11, 2024
by April 11, 2024 0 comment
Share
0
FacebookTwitterPinterestWhatsapp

Sometimes, it helps to look at a stock like NVDA to get a pulse of the market.

NVDA’s stock price is up over 85% in 2024. It’s a leader in the AI ecosystem and the most talked-about stock. So what does the future hold for NVDA in terms of its stock price and the company at large? How much will competition from Alphabet, Inc. (GOOGL) and other AI chipmakers impact the stock’s price?

A Deep Dive Into NVDA’s Stock Price

Some investors may have feared rising competition for NVDA from competitors such as Alphabet (GOOGL), Intel (INTC), and other AI chipmakers. This led some investors to rush to sell the stock. As a result, NVDA’s stock price entered correction territory, which attracted investors to buy the dip.

Let’s examine the NVDA’s stock price chart closely to identify potential entry points or ways to invest.

If you look at a five-year weekly chart of NVDA stock below, it’s clear that the stock price has been rising from June 2019 until November 2021. For the most part, NVDA’s stock price remained above its 20-week simple moving average (SMA). When NVDA broke below this SMA, it found support at its 50-week SMA. Yet when the stock price broke below the 50-week SMA on April 11, 2022, the stock price corrected. It was in correction territory for about six months.

CHART 1. WEEKLY CHART OF NVDA STOCK. With a high StockCharts Technical Rank (SCTR) ranking and relative strength vs. the S&P 500, NVDA is a strong stock. It’s trending up and went through a minor correction.Chart source: StockChartsACP. For educational purposes.

After NVDA stock broke above the downward-sloping trending (dashed blue lines) in November 2022, it moved sideways for a couple of months. After the stock price broke above the 50-week SMA on January 23, 2023, the uptrend resumed, and the stock continued higher, notching new all-time highs.

Looking at NVDA’s stock price now, it’s far from its 20-week SMA. The stock has a StockCharts Technical Rank (SCTR) score of 98.2 (upper panel), which suggests that NVDA is still strong. NVDA’s relative strength compared to the S&P 500 ($SPX) is above 950% (lower chart panel). There’s no sign of weakness in NVDA.

Turning to the daily chart, NVDA stock hit a resistance level on March 25, 2024 (the previous high of March 8, 2024) and has moved lower since then. The stock price was trading within a downward-sloping channel (dashed black lines) and below its 20-day SMA. But it has broken above the downward sloping trending channel and is just above its 20-day SMA. The stock price bounced off the support of the retracement from its March high (lower horizontal line). Its next resistance is the high of March 25, 2024. If the stock price breaks above this resistance level, NVDA’s stock price could continue a bullish rally of hitting new all-time highs.

CHART 2. DAILY CHART OF NVDA STOCK. After hitting resistance, NVDA pulled back, with the price declining within a narrow downward-sloping price channel. The stock has now broken out of the channel and is trading slightly above its 20-day SMA.Chart source: StockChartsACP. For educational purposes.

NVDA’s stock price is strong even when the broader market may show slight signs of corrective behavior. So, despite hotter-than-expected CPI data and the possibility of fewer than three interest rate cuts in 2024, investors are still optimistic about the stock market.

Getting a Piece of NVDA

Looking at the underlying strength of the macroeconomic environment and assuming earnings season goes well, the stock market may continue its bullish trajectory. The stock could move sideways for a while before resuming its bullish trend. It all depends on investor sentiment. 

Another scenario that could play out is that NVDA could go through a correction similar to the one that started in April 2023. That would mean NVDA’s stock price would have to break below its 20-week SMA, now at around $686—a long way from where the stock is trading. It would take a lot for the stock to drop that low.

Since anything can happen in the stock market, it’s best to be prepared for any scenario. Either way, a pullback would be an excellent opportunity to buy the stock. NVDA’s stock price is around $900 per share, which could be costly, especially if you want to buy a substantial number of shares.

A couple of exchange-traded funds (ETFs) with significant NVDA exposure are the VanEck Semiconductor ETF (SMH) and the Grizzle Growth ETF (DARP). Another way to invest is in mutual funds with substantial exposure to NVDA. Fidelity Growth Company (FDGRX), Dunham Focused Large Cap Growth (DNFGX), and Baron Fifth Avenue Growth Retail (BFTHX) are a few to consider.

Think of what exposure to a stock like NVDA would do to your portfolio!

Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional.

You Might Also Like
  • What’s the BEST Market Visualization Tool?
  • Earnings Preview: The Technical Temperature
  • Consumer Staples Stocks Have Broken Key Support – Here’s What You Need To Know
  • The Wisdom of Jesse Livermore, Part 6
Share
0
FacebookTwitterPinterestWhatsapp

previous post
Market Research and Analysis – Part 5: Drawdown Analysis
next post
Master Market Entry with This RSI Strategy!

You may also like

Volatility Taunting Fresh Equity Buyers

September 23, 2023

With The Top 10 Picks In The Stock Market DRAFT,...

February 19, 2024

The Best Traders ALWAYS Cherry-Pick Their Setups

November 8, 2023

Keeping Up With The Jones – How Weakness in This...

April 13, 2024

The Halftime Show: Sectors Bullish Percent Index

March 6, 2023

Gold and Silver Are Crushing the S&P 500! Here’s What...

February 21, 2025

This is the Group to Watch for the Next Bull...

April 18, 2025

Five Stocks Showing Strength in a Bearish Tape

March 13, 2025

The SCTR Report: Insmed’s Stock Hangs in the Balance—Here’s What...

September 12, 2024

The SCTR Report: Carvana Stock Makes It To Top of...

August 5, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Krispy Kreme stock plunges after doughnut chain pauses McDonald’s rollout, pulls outlook

      May 8, 2025
    • Don’t Buy Robinhood Stock… Until You See This Chart Setup

      May 8, 2025
    • UnitedHealthcare sued by shareholders over reaction to CEO’s killing

      May 8, 2025
    • The Unpredictable Stock Market: How to Make Sense of It

      May 8, 2025
    • AMD CEO calls China a ‘large opportunity’ and warns against strict U.S. chip controls

      May 7, 2025

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be...

      June 27, 2024 2,630 views
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as...

      August 9, 2024 2,339 views
    • 3

      Biden appointee played key role in recruiting Chinese...

      June 25, 2024 2,320 views
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful...

      July 10, 2024 2,302 views
    • 5

      Harris VP pick spent years promoting research facility...

      August 29, 2024 2,186 views

    Categories

    • Economy (7,009)
    • Editor's Pick (2,066)
    • Investing (538)
    • Stock (2,530)

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be revived under new House GOP bill

      June 27, 2024
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as Harris camp blasts ‘lying’ critics

      August 9, 2024
    • 3

      Biden appointee played key role in recruiting Chinese businesses to Delaware: ‘Longtime friends’

      June 25, 2024
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful of Chinese spy threats

      July 10, 2024
    • 5

      Harris VP pick spent years promoting research facility that collaborated with ‘Chinese military company’

      August 29, 2024

    Latest News

    • Krispy Kreme stock plunges after doughnut chain pauses McDonald’s rollout,...

      May 8, 2025
    • Don’t Buy Robinhood Stock… Until You See This Chart Setup

      May 8, 2025
    • UnitedHealthcare sued by shareholders over reaction to CEO’s killing

      May 8, 2025

    Categories

    • Economy (7,009)
    • Editor's Pick (2,066)
    • Investing (538)
    • Stock (2,530)

    Disclaimer: RoundTableThoughts.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 RoundTableThoughts.com. All Rights Reserved.

    Round Table Thoughts
    • Investing
    • Stock
    Round Table Thoughts
    • Economy
    • Editor’s Pick

    Read alsox

    Extreme Breadth Readings Say Short-Term Bearish,...

    December 16, 2023

    Top 5 Stocks in “Go” Trends...

    August 9, 2024

    Growth Stocks Seen THRIVING in Anticipation...

    August 23, 2023
    Sign In

    Keep me signed in until I sign out

    Forgot your password?

    Password Recovery

    A new password will be emailed to you.

    Have received a new password? Login here