Potential signal:
- I am buying just above $185, with a stop loss at $183.
- I am aiming for $190.
Nvidia edges higher on Thursday, holding its uptrend near the 50-day EMA. A breakout above $185 could trigger momentum toward $195–$200, while dips remain buying opportunities amid strong demand and heavy weighting within the NASDAQ index.
Top Forex Brokers
Nvidia rallies slightly during the session on Thursday as we continue to test the overall uptrend line. The 50-day EMA sits right there as well, and therefore, it shows a certain amount of resiliency in the overall uptrend. That being said, the $185 level is a level that has been resistant over the last several trading sessions, but if we can break above that $185 level, then it opens up quite a bit of momentum, and we could go looking at the $195 level.
Short-term pullbacks continue to get bought into, and it's probably worth noting that the market for Nvidia has been extraordinarily strong for some time. I think you have to look at it as a buy on the dip situation. It's probably only a matter of time before we reach the highs again, as Nvidia is owned by almost everybody. And of course, most passive investing vehicles include Nvidia.
On a Breakdown…
If we were to break down below the $175 level, it could open up quite a bit of selling pressure, perhaps down to the $165 level, which was previous support. It would also be a trend line break, but it wouldn't necessarily be terminal — it comes down to how the overall market behaves. After all, Nvidia is 14% of the NASDAQ index, and that is something that cannot be ignored.
Overall, though, I think you've got a situation where traders will be looking at this through the prism of a potentially increasing support level that will then open up the possibility of a longer-term move towards what I believe is the final destination, at least in the intermediate term, which is the $200 level. Markets like these large, round, psychologically significant figures, and it's difficult to imagine a scenario where those who are bullish on Nvidia aren't looking at that as a destination.
Ready to trade our stock market forecast and analysis? Here are the best CFD stocks brokers to choose from.