Chart of the Day: Back Up the Truck if Nvidia Corrects
Pullbacks in this stock have been rewarding to shareholders.
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Stop me if you haven't heard the name Nvidia NVDA in the last few weeks. Of course, the big semiconductor company has been on the "tip of the tongue" of every hedge fund manager, ETF player, analyst and strategist on Wall Street. It seems folks just can't get enough of this powerhouse.
The company makes money and may be selling at a cheap multiple relative to its peers, but more importantly investors are making big money in the stock. At the end of the day, that is what matters.
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Looking to the chart of Nvidia, above, we see a very strong bullish uptrend of higher highs, higher lows. This is a classic definition of an uptrend. Notice that each time there was a pullback buyers came in aggressively to scoop up shares. There is nothing more bullish than that behavior.
The indicators were pretty overbought recently and now have cooled off some, but the price action is relentless. Even after some sideways movement NVDA keeps pushing up with aggressive action.
The parabolic SAR (stop and reverse) is once again bullish and will provide good support along the way.
There's no question the volume trends are positive. Does anyone really want to sell NVDA at this juncture? Not in the least!
We rate NVDA a Two in the TheStreet Pro Portfolio, meaning "stockpile" on pullbacks.
At the time of publication, TheStreet Pro Portfolio is long NVDA.
