Technical Signals Point to a Possible Breakout for NVIDIA CORP.

NVIDIA CORP (NASDAQ:NVDA) was identified as a Technical Breakout Setup Pattern by our stockscreener. Such a pattern occurs when we see a pause in a strong uptrend: after a strong rise the stock is consolidating a bit and at some point the trend may be continued. Whether this actually happens can not be predicted of course, but it may be a good idea to keep and eye on NASDAQ:NVDA.

Analyzing the Technical Aspects

Every day, ChartMill assigns a Technical Rating to each stock, providing a score ranging from 0 to 10. This rating is determined by evaluating various technical indicators and properties.

We assign a technical rating of 10 out of 10 to NVDA. Both in the recent history as in the last year, NVDA has proven to be a steady performer, scoring decent points in every aspect analyzed.

• The short term is neutral, but the long term trend is still positive. Not much to worry about for now.
• When comparing the yearly performance of all stocks, we notice that NVDA is one of the better performing stocks in the market, outperforming 97% of all stocks. On top of that, NVDA also shows a nice and consistent pattern of rising prices.
• NVDA is part of the Semiconductors & Semiconductor Equipment industry. There are 108 other stocks in this industry. NVDA outperforms 95% of them.
• NVDA is currently trading in the upper part of its 52 week range. The S&P500 Index however is currently trading near a new high, so NVDA is lagging the market slightly.
• In the last month NVDA has a been trading in the 131.80 - 152.89 range, which is quite wide. It is currently trading in the middle of this range, so some resistance may be found above.

Check the latest full technical report of NVDA for a complete technical analysis.

Looking at the Setup

Besides the Technical Rating, ChartMill also assign a Setup Rating to every stock. This setup score also ranges from 0 to 10 and determines to which extend the stock is consolidating. This is achieved by evaluating multiple short term technical indicators. NASDAQ:NVDA currently has a 8 as setup rating:

Besides having an excellent technical rating, NVDA also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. A pullback is taking place, which may present a nice opportunity for an entry. There is a resistance zone just above the current price starting at 147.64. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 138.24, a Stop Loss order could be placed below this zone.

Trading setups like NASDAQ:NVDA

One way to play this would be to wait for the actual breakout to happen and buy when the stock breaks out above the current consolidation zone. A possible place for a stop loss would be below this zone.

This article should in no way be interpreted as trading advice. You should always make your own analysis and trade or not trade based on your own observations and style. The article is based purely on some technical observations.

Our Breakout screener lists more breakout setups and is updated daily.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.