The NVIDIA (NASDAQ:NVDA) traded higher on Tuesday, after it hit support at 464 on Monday. The rebound took the price slightly above the psychological zone of 500, which is also Friday’s high, but the move was cut short, with the stock pulling back near that psychological zone.
Overall, the price structure on the 4-hour chart remains of lower peaks and lower troughs and thus, despite yesterday’s recovery, we will take a somewhat-negative approach.
Even if NVIDIA recovers a bit more, we see decent chances for the advance to stop near the key 512 resistance zone, which acted as a strong support between Nov. 10 and Jan. 27. If investors decide to abandon the stock near that hurdle, we may see a slide back below 500, something that may open the way towards Monday’s low of 464. A break below 464 would confirm a forthcoming lower low and may set the stage for extensions towards the low of Aug. 11, at 432.
Shifting attention to our short-term oscillators, we see that the RSI, although it exited its below-30 zone and got closer to the 50 line, shows signs that it could turn down again. The MACD, although within its negative territory, remains above its trigger line still pointing up. The RSI suggests that the price may turn south again soon, but the MACD implies that we may see some more recovery before that, perhaps for a test near the aforementioned 512 zone.
Now, in order to start examining larger advances, we would like to see a clear move above 529, which is the inside swing low of Feb. 25. This may open the path towards the 555 hurdle, marked as a resistance by the highs of Mar. 1 and 2, the break of which may see scope for extensions towards the peak of Feb. 24, at 580.
Which stock should you buy in your very next trade?
AI computing powers are changing the stock market. Investing.com's ProPicks AI includes 6 winning stock portfolios chosen by our advanced AI. In 2024 alone, ProPicks AI identified 2 stocks that surged over 150%, 4 additional stocks that leaped over 30%, and 3 more that climbed over 25%. Which stock will be the next to soar?
Unlock ProPicks AI