So far this month, chipmaker Nvidia (NVDA) has climbed up from the red zone into the Green Favored Zone of the SIA S&P 100 Index Report. Yesterday the shares finished in 16th place, up 6 spots on the day and up 55 spots in the last month.
Nvidia (NVDA) shares have staged a major breakout this week, decisively blasting through the top of a six-month trading range to a new all-time high on increased volume. This move signals that a six-month sideways consolidation trend is over and a new uptrend is underway.
Based on measured moves from the recent trading range, next potential upside resistance appears near $725.00 then $765.00, with the $750.00 round number in between them. Initial support appears near the $600.00 round number and breakout point.
Coming off a strong high pole advance last summer, Nvidia (NVDA) shares spent six months in consolidation mode. Starting in October, the shares began slowly trending back upward but it took a downturn in March to flush out the last of the sellers. In recent weeks, the shares have embarked on a new upleg, rallying up to a new all-time high and completing a bullish Double Top pattern.
Based on vertical and horizontal counts, next potential upside resistance appears near $695.20, $737.50 and then close to the $800.00 round number. Initial support appears near the $600.00 round number, then $593.25 based on a 3-box reversal.
With its bullish SMAX increasing to 9, NVDA is exhibiting near-term strength against the asset classes.
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