Zinger Key Points
- Nvidia was attempting to regain the 200-day SMA as support
- The stock is trading in a confirmed uptrend, making a series of higher highs and higher lows.
NVIDIA Corp NVDA declined over 3% when the market opened Thursday before spiking up over 3.4% from Wednesday’s closing price.
The move came in tandem with the general market, which saw the S&P 500 whipsawing back and forth around the 200-day simple moving average (SMA) as the market attempted to digest CPI data released by the U.S. Labor Department.
Nvidia tagged the 200-day SMA on Thursday afternoon and was attempting to regain the level as support.
See Also: Boom! Tesla Confirms Bearish Candlestick Pattern — Is A Bull Trap Next?
The 200-day SMA is an important bellwether. Technical traders and investors consider a stock trading above the level on the daily chart to be in a bull cycle, whereas a stock trading under the 200-day SMA is considered to be in a bear cycle.
The 50-day SMA also plays an important role in technical analysis, especially when paired with the 200-day. When the 50-day SMA crosses below the 200-day SMA, a death cross occurs whereas when the 50-day SMA crosses above the 200-day, a bullish golden cross takes place.
Want direct analysis? Find me in the BZ Pro lounge! Click here for a free trial.
The Nvidia Chart: Nvidia reversed into an uptrend on Dec. 28, with the most recent higher low formed on Jan. 6 at $140.34 and the most recent confirmed higher high printed at the $150.66 mark on Monday. On Thursday, Nvidia was popping higher but hasn’t indicated that the next higher has occurred.
- Thursday’s spike higher was also due to a bullish break from a double inside bar. The inside bar was formed between Monday and Wednesday, with the mother bar printed on Monday and the inside bars formed over the last two trading days.
- If the Santa Clara, California-based company closes the trading session at the 200-day SMA, the stock will print a bearish hanging man candlestick, which could indicate the next higher high is in and Nvidia will trade lower on Friday. If the stock closes the trading day above the 200-day SMA, while still printing a hanging man candlestick, Nvidia may begin to consolidate above the 200-day SMA over the next few days.
- Nivida has resistance above at $169.98 and $180.73 and support below at $161.37 and $145.75.
Read Next: What's Going On With Nvidia, AMD Shares Today?
Image: Wikimedia
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
