Chart of the Day: Don't Expect Nvidia to Disappoint
The big chip company has a long reach and will touch most technology stocks.
You've reached your free article limit
You've read 0 of 1 free Pro articles.
The fascinating part of the artificial intelligence (AI) revolution is the enormous promise and hype that this new computing power will make our lives easier and better.
Of course, that view is up for debate, but for most companies like Nvidia NVDA they see a very long runway of success. The company has delivered on earnings for the past several quarters and guided up strongly each time.
This week Nvidia will deliver earnings from its latest quarter and most believe they will not disappoint. We also believe that to be true.
Many traders and investors are weary about getting into Nvidia, concerned they are late to the party, and listening to others who have been in the name for months or years saying it is not too late. Well, you see the dilemma.
But the chart/technicals tell us what to expect, and the recent past shows a nice progression from purple candles to pink to teal and now blue. That is a move from bearish to strongly bullish, and why not? The stock shows resilience as it is widely-held and owned by many institutions.
On the technical side, stochastics are strong and check out money flow, with higher highs and higher lows (bottom pane). Volume trends are much improved from earlier in the month, and regardless of what the company may say in their earnings call, the bulls have the advantage here.
More Pro Portfolio:
- A Netflix Opening Gives Us a Reason to Pick Up More of These Shares
- Weekly Roundup: Fed Hits the Brakes on Rate-Cut Hopes
- Signals From Our Investing Notebook
At the time of publication, TheStreet Pro Portfolio was long NVDA.
