SIACharts Logo

Commentary >

Nvidia Corp. - (NVDA) - February 12, 2021 

Chipmaker Nvidia (NVDA) has returned to the Green Favored Zone of the SIA S&P 100 Index Report from a brief dip into the yellow zone after climbing 9 spots yesterday to 25th place. Accumulation in Nvidia (NVDA) shares has intensified this week, culminating in a major breakout to a new all-time high. Since September, the shares had been trending sideways with lower highs and higher lows forming a Symmetrical Triangle, indicative of a consolidation phase within a larger upward trend.

This week, the shares primary uptrend has resumed with the shares breaking out over $550 to resolve the symmetrical triangle to the upside, then breaking through $590 to complete a bullish Ascending Triangle to signal the start of a new advance. Gains on volume and yesterday’s breakout over $600 confirm renewed investor interest.

Next potential upside resistance tests on trend appear near $680 and then $710 based on measured moves from the two triangles. Initial support appears near $590 and $560, the two breakout point.

After doubling in a May to September, Nvidia shares had spent the last five months in a normal consolidation phase. Through this period, O columns continued to bottom out at higher lows, indicating that underlying accumulation remained intact even as upward momentum slowed for a while. Recently, signs have emerged indicating that the shares have started to accelerate upward with the completion of bullish Spread Double Top and Double Top patterns, and yesterday’s close at a new all-time high above $600.00.

Based on horizontal and vertical counts, next potential upside resistance appears on trend near $642.25, then $681.60 and $723.30. Initial support appears near $559.10 based on a 3-box reversal.

With its bullish SMAX score increasing to 7, NVDA is exhibiting near-term strength against the asset classes.

Disclaimer: SIACharts Inc. specifically represents that it does not give investment advice or advocate the purchase or sale of any security or investment whatsoever. This information has been prepared without regard to any particular investors investment objectives, financial situation, and needs. None of the information contained in this document constitutes an offer to sell or the solicitation of an offer to buy any security or other investment or an offer to provide investment services of any kind. As such, advisors and their clients should not act on any recommendation (express or implied) or information in this report without obtaining specific advice in relation to their accounts and should not rely on information herein as the primary basis for their investment decisions. Information contained herein is based on data obtained from recognized statistical services, issuer reports or communications, or other sources, believed to be reliable. SIACharts Inc. nor its third party content providers make any representations or warranties or take any responsibility as to the accuracy or completeness of any recommendation or information contained herein and shall not be liable for any errors, inaccuracies or delays in content, or for any actions taken in reliance thereon. Any statements nonfactual in nature constitute only current opinions, which are subject to change without notice.

Related Posts

Keep up to date on the latest financial market news.

Receive a daily newsletter with stock highlights, ETF rankings, weekly market focus and others.