Chipmaker Nvidia (NVDA) has once again returned to the Green Favored Zone in the SIA S&P 100 Index Report, bouncing back from a couple of dips down into the yellow and red zones over the last couple of months. On Friday, NVDA jumped 18 positions to 15th place.
Nvidia (NVDA) staged a major breakout on Friday. Since peaking in November, NVDA had been under distribution, establishing a downtrend of lower highs. Through February and March, support started to emerge above the $200.00 round number. Last week, the shares started to climb on increasing volumes, a sign of renewed accumulation that was confirmed on Friday with the shares breaking through $250.00, snapping a downtrend line and retaking their 50-day moving average. Initial support appears at the 50-day moving average near $245.00.
Upside resistance tests coincide with previous peaks near $270.00, then the $300.00-$315.00 zone, followed by $330.00 and $345.00 on trend.
After peaking in December, Nvidia (NVDA) shares sold off in January, but since February, the shares have stabilized, and established a trading range between $211.60 and $268.40, where they have been base building. Accumulation appears to have resumed recently with the shares rallying up off of channel bottom support and completing bullish Double Top and then Spread Double Top patterns. Currently, NVDA is bumping up against the top of its range where a breakout would complete the base and a bullish spread triple top pattern.
Initial resistance appears at a downtrend line near $280.00, followed by $308.25 based on a horizontal count, and then the previous peak near $333.65. Initial support appears near $243.05, based on a 3-box reversal and a retest of a previous breakout point.
With its SMAX score increasing to a bullish 7, NVDA is exhibiting strength against the asset classes.
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