NVDA Stock Approaches Strategic Buying OpportunityNVDA Stock Approaches Strategic Buying Opportunity Nvidia (NASDAQ: NVDA) shares have recently declined to around $110 after a sharp drop, now down 20% from its peak. Despite these fluctuations, NVDA is still up 126% year-to-date. Technical Analysis Insights: – NVDA has been trading within an ascending channel for 20 months, indicating bullish momentum. – The mid-June peak and recent pullback suggest a potential continuation of the uptrend. – The 50-day moving average is currently a potential buying opportunity. – Historical patterns indicate a bearish leg that could extend to $110, providing a strategic entry point. – The 50-week moving average on the weekly chart provides long-term support. – Fibonacci extension at $170 offers a potential upside target. Key Levels to Monitor: – Support: 50-day moving average ($113) – Resistance: Upper price channel boundary Upcoming Earnings Report: The upcoming earnings report is crucial as NVDA seeks to address concerns about chip sales. Analysts expect the company to emphasize the return on investment for customers. Conclusion: Technical indicators suggest a strategic buying opportunity as NVDA approaches $110. The $170 target price offers potential upside. Investors should monitor key levels and consider these insights when making decisions. Disclaimer: This information is not investment advice. Investing involves risk and you should consult a financial advisor before making any investment decisions.
Share price of semiconductor giant Nvidia (NASDAQ: NVDA) has recently approached the $110 mark after suffering a sharp decline over the past week.
This drop follows a significant spike in mid-June, which marked a higher high at the top of a 20-month ascending channel. At the close of markets on July 29, NVDA is valued at around $111, having fallen around 1.30% over the past 24 hours.
Despite recent fluctuations, NVDA shares are still up 126% for the year. However, the stock is now down more than 20% from its peak intraday price of $140.76, raising concerns among investors about the sustainability of its recent gains.
In this context, analyst Trade shot marked in a Trade view reported that the stock price would soon reach $110 and advised investors to keep a close eye on NVDA as this strategic buying opportunity approaches.
Technical Analysis and Insights of NVDA Stock
According to TradingShot’s Analysis of the daily chart, NVDA has been trading within a well-defined upward channel for 20 months, indicating a strong bullish trend. The mid-June peak, which reached a higher high at the upper boundary of this channel, suggested significant bullish momentum.
Nvidia stock price analysis chart. Source: TradingView/Tradingshot
The 50-day moving average is a critical short-term trend indicator. Historically, NVDA becomes an attractive buy when the price drops below this moving average. Currently, the stock is approaching this level, indicating a potential buying opportunity.
The chart also shows previous bearish legs with declines of at least 22.56%. The current downtrend suggests that NVDA could extend its losses to these levels before a reversal occurs, indicating that the stock is forming a new bearish leg and moving towards the lower boundary of the price channel.
Similarly, the 50-week moving average on the weekly chart serves as a long-term support level. NVDA has consistently remained above this moving average.
Nvidia stock price analysis chart. Source: TradingView/Tradingshot
The chart also indicates a 2.0 Fibonacci extension at $170, suggesting this is a future price target. Each higher high in NVDA’s price corresponds with a lower Fibonacci extension level, reinforcing the validity of this target.
Historical patterns show that NVDA’s bearish legs are extending significantly. The current leg is expected to close around $110, which provides a strategic entry point.
Key levels to monitor
Key support levels for NVDA include the 50-day moving average at $113, which serves as a crucial short-term support level for entry points.
Furthermore, the 1-day relative strength index (RSI) below 40 historically marks the top of the long-term buy zone within the channel up pattern. On the resistance side, the upper price channel boundary represents the upper boundary of the long-term bullish channel.
The Fibonacci extension at $170 is another important level to watch as the price approaches higher targets. A break below the 200-day moving average would indicate a long-term bearish reversal.
In conclusion, the upcoming earnings report will be crucial for NVDA as the company seeks to address investor concerns about the duration of the current surge in chip sales.
Analysts at Goldman Sachs (NYSE: GS) expect Nvidia to focus on demonstrating the return on investment (ROI) its customers are getting from its graphics cards. They want to convince investors that the recent surge in demand is a sustainable trend and not a temporary buying spree.
This could reverse the current downward trend and provide a clearer picture of Nvidia’s future performance.
Investors should keep a close eye on NVDA as it approaches the $110 mark, a strategic buying opportunity. The $170 target price offers significant upside potential based on historical price patterns and Fibonacci extension projections.
These insights, based on technical analysis, can help investors make informed decisions and profit from potential Nvidia price movements.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
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