Time to Buy? for NASDAQ:NVDA by SLRK — TradingView


NVDA clearly had a stellar run since its dip in 2019, however since late 2020 the stock seem to have lost a bit of steam and started consolidating above $500. Avg . trading volume started fading and the stock went into a sideways trading pattern.

Clearly the crypto frenzy and the new GPU lineup should boost the companies revenues, but we all know the story; delivery delays on the GPU and a strong AMD competition somewhat seem to have spoiled the party…

If we believe the analyst consensus the stock should trade around $591 which is the all time highs which the stock tested in September and November. So is the recent pullback into the $520 and upcoming earnings worth buying?

Technicals;

+ long term uptrend since 2019 followed by a consolidation in late 2020 and early 2021

+ Consolidation has tightly followed Fibonacci support and resistance levels (predictability)

+ Wedge formation and Bolling Band squeeze indicates potential breakout

+ Volume on positive days > negative days

+/- MACD at potential bullish crossover point

+/- RSI indicates mildly oversold territory

– Upside of 14% to target price seems little compared of the YTP performance

Personally I will look for a quick trade with entry around current levels and a tight SL to prevent unnecessary risks;

Buy Limit $520 GTD

SL $497

TP $591



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