Chart of the Day: Updating Nvidia Before Earnings Run Up
It’ll be a few weeks before NVIDIA ($NVDA) reports earnings for its recently finished quarter, but it is never too early to start pondering what move it might make.
After the last few quarters of delivering quality earnings and raising guidance the stock slumped, but a sudden burst of energy in April pushed Nvidia up to new highs as it broke from a very long base, more than five months. The stock ran out of energy at the $215 level and faded.
Fortunately, that fade took the stock down to the “reliable” 20-day moving average, where Nvidia often has a nice bounce. Candles have turned teal from blue, which still means cautiously bullish. This recent pullback is a good chance to add more shares.
However, not all of the indicators are on board with a bullish stance. The MACD is on a sell signal crossover, the stochastics (momentum) has nosedived and if you have been following NVIDIA for some time you know that momentum is the one key that carries the stock higher. Money flow is positive but has backed off, I suspect the big money managers who have been selling are simply waiting for another entry point before earnings, this might be the moment.
We’ll take another look at Nvidia in a day or so before their late May earnings release. We like Nvidia in TheStreet Pro Portfolio and rate it a one, buy at anytime.
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At the time of publication, TheStreet Pro Portfolio was long NVDA.
