Nvidia Looks Like It's Breaking Out Of A Pattern

NVIDIA Corp. NVDA shares traded higher Monday after several chipmaker stocks traded higher following a Maxims acquisition by Analog Devices was approved by Chinese trust officials.

Nvidia's stock closed up 5.49% at $219.58.

See Also: Strengthening Positions In The Segment Of Professional Visualization Leads NVDA To New Heights

Nvidia Daily Chart Analysis

  • The stock looks to be breaking out of what technical traders call an ascending triangle pattern.
  • The stock trades above both the 50-day moving average (green), and the 200-day moving average (blue), indicating the sentiment in the stock is likely turning bullish.
  • Each of these moving averages may hold as a potential area of support in the future.
  • The $210 price level has held as resistance in the past, but now the stock has broken out past this level.
  • The Relative Strength Index (RSI) has been moving up the past couple of weeks and now sits at 68. The stock is nearing the overbought range, where there may be a lot of buying pressure.

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What’s Next For Nvidia?

Bullish traders are looking to see the stock continue to breakout and push higher. Bulls would then like to see the stock consolidate above resistance for a potential next leg up.

Bearish traders would like to see the stock fall back below the $210 price level and then would like to see the stock drop below the higher low trendline for a possible change in trend.

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