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NVDA Forecast: Bounces Back in Premarket Trading

By Christopher Lewis

Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex...

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  • Nvidia looks like it's going to open down just a touch. And the closer we get to that 930 New York opening, the closer we get to break even. Exciting times.
  • Nvidia certainly looks as if it is recovering from the sell-off that we saw overnight after the earnings report.
  • The thing is that the earnings report did beat expectations. I guess people just didn't think it beat them by enough, but now that the adults are back, we are starting to see people jump back into this market, and now it's a race as to whether by 9.30 are we at where we left off or possibly higher.

It'll be an interesting opening. Nonetheless, I think at this point in time, Nvidia is going to do everything it can to break above the $185 level. And if and when it does, I don't see really any reason to think whatsoever that we can't get to $200. In fact, the consolidation that we've been in over the last six weeks or so measures $15. A break of the $185 level and a measured move would be $15. So, it all lines up for a move to $200 given enough time.

NVDA Forecast 29/08: Bounces, Premarket Trading (graph)

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Keep in mind this time of year is a little thinner than many other times of year because a lot of institutional traders are away on holiday. So that might skew this market just a touch, but as more volume comes back into the market, I think you'll probably see traders willing to get involved. We've had a nice rally since April. The fact that we've gone sideways at that point suggests to me that we're just simply digesting a lot of these gains. The 50 day EMA is approaching that $170 support level as well. So that's another reason to think that there are plenty of buyers. At this point, NVIDIA still looks to be a massive leader on Wall Street.

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Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.

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