Is Nvidia prepared for new hike in price?

Nvidia has been able to become a leader in chip making, suitable for gaming consoles, autonomous cars and Blockchain technologies. These are exciting areas with huge growth potential and therefore the company's shares are up 60% since the beginning of the year. Is it possible for the company to mark a successive peak from now?

Last week it seemed that the stock would collapse very quickly, but the price managed to retreat from the support area, then dropped again. This rebound from the support and following test will give the bulls good entry levels.

From the graph, we can see that the price has triggered a triangle that is currently being tested by having an internal bar-positive price signal. The volume is also higher than the average during breakthrough and at support levels, meaning that the break is significant. The top-end correction to the current levels is 10.1%, meaning that the distance from the current levels to the last peak is enough to give us a good risk/return ratio.

The stochastic oscillator moves close to its average value, suggesting that it is possible to keep the price for a while at these levels or to make a deeper adjustment. The weekly divergence between the price is MACD is spoiled, indicating that the current levels are key to the price and a possible twist.

In the next few days, we can see some consolidation, and when reaching the $ 167 levels, it's a good idea to position ourselves with long positions to reach the top of $ 190.

Source: Bloomberg Pro Terminal

Jr Trader Petar Milanov

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