Stock of the day: NVIDIA

By Tomasz Wisniewski|

Published: April 17 2023, 10:30 GMT+0

Stock of the day: NVIDIA

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Today, we will take a closer look at NVIDIA, a high-tech company specializing in the production of graphics processing units (GPUs). The company’s success is closely tied to advancements in the gaming industry, as well as in autonomous driving and AI. Recently, we learned that Elon Musk’s AI project purchased thousands of GPUs from NVIDIA, further solidifying the company’s position in the AI race.

From a technical standpoint, the long-term outlook for NVIDIA is bullish. The company is still under the influence of a giant inverse head and shoulders formation (green) that emerged in the second half of last year. More recently, a smaller head and shoulders pattern (yellow) has emerged, which could potentially trigger a bearish correction.

NVIDIA has already taken the first step towards a correction, as the price broke the neckline of the smaller head and shoulders pattern (light blue). The next step for a potential drop would be a breakout of the mid-term uptrend line (dark blue), but Friday’s session ended with a rise.

So, how should you approach trading NVIDIA? A price closing a day below Friday’s lows would be a signal to sell, while the price coming back above the neckline would be a definite signal to buy, as this would indicate a false bearish breakout from the head and shoulders formation.

Source: https://www.axiory.com/analytics/stock-of-the-day/stock-of-the-day-nvidia

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