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.

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.