- On Tuesday, the stock market has been very noisy and of course this has had a significant influence on Nvidia. Nvidia of course is one of the most widely traded stocks, so it does make a certain amount of sense that people would be looking at this market as one that they may try to play any type of momentum in the overall indices.
Nvidia is a Leader
I’ll be watching the stock market during the trading session on Wednesday, because it could suggest that we are going higher or lower based on which direction it is moving. Even if you are not trading in Nvidia, you need to be aware of the overall momentum of stock, because it has a major influence on what happens with the indices and by extension, other markets as well.
Looking at the chart, I think that the $190 level will continue to be a short-term resistance barrier, but it is probably only a matter of time before we break above that level and continue going much higher. On a move above the $190 level, I am anticipating that Nvidia goes looking to the $200 level next. Short-term pullbacks continue to offer buying opportunities, and I have no interest whatsoever in trying to short Nvidia as things stand right now. Even if we break down from here, the 50 Day EMA at the $175.85 level will be a significant support level that people will have to pay close attention to.
On the other hand, even if you are only trading the indices, if you see Nvidia crack the $192 level to the upside, you can use that as part of the signal considering it is such a huge portion of the stock market indices by itself. All things being equal, we are in a bullish trend, and I don’t have any interest in fighting that, despite the fact that it has been noisy over the last couple of days.
Potential signal: I am buying NVDA at 190.20, with a stop at 188, and a take profit order at 194.
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