Why Nvidia Could Be Helped By Meta Platforms Building The Metaverse

NVIDIA Corp. NVDA shares are trading higher Tuesday, with its strength attributed to Meta Platforms Inc.'s FB plans to increase capital spending including data centers, servers and network infrastructure, potentially benefiting chip companies. Meta Platforms is forming a metaverse, which is likely going to require more microchips.

NVIDIA was up 2.06% at $263.63 at last check Tuesday afternoon.

NVIDIA Daily Chart Analysis

• The stock continues to push higher after breaking out of what technical traders call an ascending triangle pattern
• After breaking above the $210 price level and retesting it as support, the stock flew higher. This trend may continue as the RSI stays high, but caution to traders as the stock will likely cool off and lose some of its gains at some point before turning around again.
• The stock trades above both the 50-day moving average (green) and the 200-day moving average (blue), indicating the stock is seeing bullish sentiment.
• Each of these moving averages may hold as a possible area of support in the future.
• The Relative Strength Index (RSI) continues to move higher and sits at 80 on the indicator. This shows that the stock is seeing a large amount of buyers compared to sellers in the stock.

See Also: How To Buy NVIDIA Stock

What’s Next For NVIDIA?

Bullish traders are looking to see the stock continue higher. Eventually the stock will cool off and potentially lose some gains. Bulls are then looking to see the stock consolidate for a time to maintain a steady healthy growth.

Bearish traders are looking to see the stock start to cool off immediately. Bears would then like to see the stock fall below the $210 level for the long term trend to possibly change. Bears are also looking to see the stock fall below the moving averages for a change in sentiment.

Image by Gerd Altmann from Pixabay