Nvidia Shares Continue to Rise During S&P 500’s Winning Streak
Nvidia (NVDA) shares have experienced a significant surge in value over the past six trading sessions, contributing to the broader recovery of the U.S. stock market. The stock’s impressive performance has caught the attention of investors, who are closely monitoring its recovery from recent lows.
The recent surge in Nvidia shares, which have climbed 24% in just six sessions, has been driven by favorable commentary from prominent brokerages such as Goldman Sachs, Bank of America, and UBS. These firms view the stock’s recent correction as a buying opportunity, further boosting investor confidence.
As of premarket trading on Friday, Nvidia shares were up 0.2% at $123.10, showing signs of continued growth. The stock had reached its lowest level since late May, closing at $98.91 on August 7, before rallying in the past few days.
Technical analysis suggests that the recent recovery in Nvidia shares has been driven by retail investors rather than larger market participants. The reversal has occurred on below-average volume, indicating that individual investors have been the primary drivers of the stock’s upward movement.
Moving forward, investors should pay attention to key price levels that are likely to attract attention in Nvidia shares. The first support area to watch is at $116, which is approximately 6% below Thursday’s closing price. This level could provide initial support during profit-taking, as it aligns with a horizontal line connecting the May high with a countertrend peak formed during the stock’s downward move between mid-July and early August.
If the stock closes below $116, it may revisit the $97 region, which was successfully defended by bulls during the selling rout on August 5. This level also aligns with two peaks in March that capped the stock’s strong trending move from January to early March.
On the upside, Nvidia shares could face selling pressure around $136, where the stock would likely encounter resistance near the June 18 record close and July swing high. Technical indicators may also confirm overbought conditions at this level, further contributing to selling pressure.
To project a new price target above the stock’s all-time high, analysts can use a bars pattern. By extracting the trending move from April to June and applying it from this month’s low, a target of around $152 can be predicted.
It is important to note that the comments, opinions, and analyses expressed in this article are for informational purposes only. Investors should conduct their own research and consult with a financial advisor before making any investment decisions.
As of the date of this article, the author does not own any Nvidia shares or securities mentioned in the article.
In conclusion, Nvidia shares have experienced a remarkable recovery, contributing to the broader rebound of the U.S. stock market. The stock’s recent surge has been driven by favorable commentary from prominent brokerages, attracting the attention of investors. While the recovery has been driven by retail investors, key price levels should be monitored to gauge the stock’s future performance.
