Here is how I expect Nvidia ($NVDA) to trade tomorrow…and tomorrow night after earnings. (February 23, 2021)
NVDA AAPL NVDA
We had a pretty wild market today. A lot of stocks look kind of similar to NVIDIA ( NASDAQ: NVDA ). You’ve got Apple ( NASDAQ: AAPL ), the same kind of thing. Just a lot of long, big old dragonfly tails and then a return to a higher low. I look at Apple ( NASDAQ: AAPL ) and what I see here is a stock that I think is going higher but it’s got a bit of pain to climb through.
Again, I think Apple ( NASDAQ: AAPL ) is going higher. My bet is, if you buy it tomorrow you are going to make money. It is just going to have a hard time climbing through this wall of pain, where all of those who bought in the red square here aren’t happy that they did. Of course, those folks that bought today are very happy that they did. I think the happiness is going to overwhelm the unhappiness and the stock is likely to move higher tomorrow.
Now, NVIDIA ( NASDAQ: NVDA ), this is interesting, I like this pattern. This is the type of thing that typically you can see moving higher and I think it will. Tomorrow I think this stock is going to run up. I don’t know, it could hit 600.00 but I would be guessing under the pretense of knowing something, and I don’t, so I am not going to lead you to think I do.
The way this stock traded today, it gapped down, traded WAY down, below the 50-day moving average but then closed higher than it opened. And so that indicates some buying pressure into the close. Unless there is something weird that happens tomorrow I think that buying is going to continue. I think you can be a buyer above 570.00. If you are buying this stock above 570.00 I think you can look forward to some pretty nice gains.
Here’s the thing, you may be wondering, what’s this box? This box surrounds what the option market is implying the move will be tomorrow when earnings are announced after the bell. I think the stock has some room to go in the morning. It wouldn’t surprise me to see this stock start to run up. But the implied move is about $38.00, give or take. So this down here is $38.00 from here, this is $38.00 from here. So this is really the range that you are looking at for where NVIDIA ( NASDAQ: NVDA ) is likely to trade.
The options market is typically not wrong. So if the stock trades anywhere in here it is actually all normal activity. Here’s the good thing though, if it trades outside of here, let’s say earnings are crappy and the stock moves down, which I doubt. It’s semiconductors, there is a huge shortage of semiconductors now. So I guess I am just guessing, but I would guess that NVIDIA ( NASDAQ: NVDA ) is going to have pretty good numbers.
I would just say this, if the stock falls down below this box, I think you can buy it; because it’s an abnormal move and the stock will come back into the box. Just be aware of these levels. Tomorrow during the day I think it is going to be a good day trade throughout the day. But then what you want to do too is, take this box, $38.00 up and down and then apply it to wherever the closing price is because that is really where the move is going to come; like $38.00 up, $38.00 down from the closing price. Now you’ve got the range for NVIDIA ( NASDAQ: NVDA ).
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