Quick Take Technical Analysis: Nvidia

NVIDIA Corporation NVDA popped over 1% higher on Friday after reports indicated an increased demand for the company’s chips.

The move higher saw the Santa Clara, California-based company attempting to break back up above a long-term ascending trend line, which had been guiding the stock higher since Jan. 19.

Nvidia broke down under the ascending trend line on Tuesday and failed to regain the area each day since. Bullish traders hope the stock closes Friday’s session above the area, which could indicate Nvidia will resume its uptrend.

If Nvidia can regain the trend line, the next major resistance zone is at $280, where the stock printed a quintuple top pattern. If Nvidia can bust up through that area, a steeper uptrend could be on the horizon.

Bearish traders would prefer Nvidia reject the upper trend line, or for the stock to reject $280 and print a bearish reversal candlestick (i.e., a doji or shooting star candlestick) at the level.

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