NVDA Remains Strong: Now is the Time to Think About Accumulating This Stock | Don’t ignore this chart!

Sometimes it helps to look at stocks like NVDA to get a sense of market trends.

NVDA’s stock price is up more than 85% in 2024. It is a leader in the AI ​​ecosystem and the most talked about stock. So what does the future hold for NVDA, both in terms of its stock price and the company as a whole? How much will competition from Alphabet, Inc. (GOOGL) and other AI chip makers impact its stock price?

In-depth analysis of NVDA stock price

Some investors may have feared increased competition for NVDA from rivals such as Alphabet (GOOGL), Intel (INTC), and other AI chip makers. This led some investors to rush to sell their stocks. As a result, NVDA’s stock price entered correction territory, causing investors to buy the dip.

Let’s take a closer look at NVDA’s stock price chart to identify potential entry points or investment avenues.

Looking at the 5-year weekly chart of NVDA stock below, it is clear that the stock has risen from June 2019 to November 2021. For the most part, NVDA’s stock price remained above its 20-week simple moving average (SMA). ). When NVDA fell below this SMA, it found support at the 50-week SMA. However, the stock price corrected on April 11, 2022, when it fell below the 50-week SMA. I was in the correctional area for about six months.

Chart 1. Weekly chart of NVDA stock. With a high StockCharts Technical Rank (SCTR) ranking and relative strength compared to the S&P 500, NVDA is a strong stock. It’s on the rise and has gone through a bit of a correction.Chart source: StockChartsACP. For educational purposes.

NVDA stock price broke the downtrend (dashed blue line) in November 2022 and then traded sideways for several months. After the stock broke the 50-week SMA on January 23, 2023, the upward trend resumed and the stock continued to rise, reaching a new all-time high.

If you look at NVDA’s stock price now, it is far from the 20-week SMA. The stock’s StockCharts Technical Rank (SCTR) score is 98.2 (top panel), indicating that NVDA is still going strong. NVDA’s relative strength compared to the S&P 500 ($SPX) is over 950% (bottom chart panel). NVDA shows no signs of weakness.

Looking at the daily chart, NVDA stock reached a resistance level on March 25, 2024 (previous high on March 8, 2024) and then fell. The stock was trading below its 20-day SMA, within a descending channel (black dotted line). However, it has broken the downtrend channel and is just above the 20-day SMA. The stock has bounced back with support for a retracement from the March high (lower horizontal line). The next resistance level is the high on March 25, 2024. If the stock breaks above this resistance level, NVDA stock could continue its bullish rally that could push it to new all-time highs.

Chart 2. NVDA stock daily chart. After hitting resistance, NVDA took a bearish move and the price fell within a narrow downward price channel. The stock has now broken out of the channel and is trading slightly above its 20-day SMA.Chart source: StockChartsACP. For educational purposes.

NVDA’s stock price is holding strong even as there are some signs of a correction in the broader market. So despite hotter-than-expected CPI data and the possibility of fewer than three interest rate cuts in 2024, investors remain optimistic about the stock market.

Get NVDA Fragments

Given the underlying strength of the macroeconomic environment and assuming earnings season goes smoothly, the stock market could continue to perform strongly. The stock may move sideways briefly before resuming its bullish trend. It all depends on investor sentiment.

Another scenario is that NVDA could undergo a correction similar to the one that began in April 2023. This means that NVDA’s stock price would need to fall below its 20-week SMA, which is currently around $686. Where stocks are traded. It would take a lot for the stock price to go that low.

Anything can happen in the stock market, so it’s best to be prepared for any scenario. Either way, a drop could be a great opportunity to buy stocks. NVDA’s stock price is around $900 per share, which can be expensive, especially if you want to purchase a significant number of shares.

Exchange-traded funds (ETFs) with high exposure to NVDA include VanEck Semiconductor ETF (SMH) and Grizzle Growth ETF (DARP). Another way to invest is to invest in mutual funds that have significant exposure to NVDA. Some to consider include Fidelity Growth Company (FDGRX), Dunham Focused Large Cap Growth (DNFGX), and Baron Fifth Avenue Growth Retail (BFTHX).

Think about what exposure to stocks like NVDA would do to your portfolio!

disclaimer: This blog is for educational purposes only and should not be construed as financial advice. You should not use any of our ideas and strategies without first evaluating your personal and financial situation or consulting a financial professional.