Will NVIDIA CORP Break Out? A Technical Analysis Perspective.

We've identified NVIDIA CORP (NASDAQ:NVDA) as a potential breakout candidate based on our stock screener's analysis. This breakout setup pattern suggests that after a strong uptrend, the stock is currently consolidating, potentially signaling a continuation of the trend. Keep an eye on NASDAQ:NVDA for further developments.

Technical analysis of NASDAQ:NVDA

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 9 out of 10 to NVDA. This is due to a consistent performance in both the short and longer term time frames. Also compared to the overall market, NVDA is showing a nice and steady performance.

• The long term trend is positive and the short term trend is neutral. The long term trend gets the benefit of the doubt for now.
• Looking at the yearly performance, NVDA did better than 94% of all other stocks. We also observe that the gains produced by NVDA over the past year are nicely spread over this period.
• NVDA is one of the better performing stocks in the Semiconductors & Semiconductor Equipment industry, it outperforms 90% of 109 stocks in the same industry.
• 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 128.22 - 153.13 range, which is quite wide. It is currently trading in the middle of this range where prices have been consolidating recently, this may present a good entry opportunity, but some resistance may be present above.

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

How do we evaluate the setup for NASDAQ:NVDA?

Besides the Technical Rating, ChartMill assigns a Setup Rating to every stock to determine the degree of consolidation. This rating, ranging from 0 to 10, is updated daily and evaluates various short-term technical indicators. NASDAQ:NVDA currently holds a 8 as its setup rating, suggesting a particular level of consolidation in the stock.

Besides having an excellent technical rating, NVDA also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. 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 137.19, a Stop Loss order could be placed below this zone.

How can NASDAQ:NVDA be traded?

A breakout could materialize when the stock breaks out to new highs above the current consolidation zone. One could wait for this to happen and buy when this happens. A stop loss could be placed below the consolidation zone.

Disclaimer: This article is not intended to provide trading advice. It is crucial to conduct your own analysis and consider your own observations and trading style when making investment decisions. The article solely presents technical observations and should not be relied upon as a sole basis for trading.

Every day, new breakout setups can be found on ChartMill in our Breakout screener.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.