Here’s your trade on $NVDA – July 10, 2024
Dan Fitzpatrick here at StockMarketMentor.com. I want to look at NVDL ( NASDAQ: NVDL ), this is like looking at NVIDIA ( NASDAQ: NVDA ) twice, it’s a 2x long ETF.
The reason I’m doing this is because if we look at this on a weekly chart we see this series of steps, up and then back, and then up and then back. This is looking like it’s on its way to a new high. Of course, the chart looks essentially the same as NVIDIA ( NASDAQ: NVDA ).
This is a weekly chart, it’s been, obviously, outperforming the S&P, that’s this relative strength here. I think this stock is very likely to go to a new high very soon. It’s behaving exactly the way it’s supposed to. I had done a favor for Jim Cramer and gave him my take on NVIDIA ( NASDAQ: NVDA ), I’ve done it a couple of times, and I put it up to 200.00.
I still ultimately, think it goes there, but my take was, just based on measured moves, that it would run to about $140.00 and then pull back and consolidate. And that is exactly what it did, I think it was 141.00, and the max was 140.76. So it really hit this dead balls on and then it pulled back.
The typical thing that this is going to do is, do the same thing that it’s done in the past. And that is, just continue to grind around for a while. And while it is doing that, what’s happening to the moving averages? The moving averages, where this was well extended above the 50-day moving average, about 40 percent, as this thing trades sideways the 50-day moving average continues to drift higher.
And so this is now 22 percent, 23 percent above the 50-day moving average. Yet, the last high is, I think 3 percent, maybe 4 percent, 3.5 percent above where this is right now. So what I’m doing is, I’m showing you math here. As time goes on and the x-axis, most people think about is the price going up or down.
You’ve got to think about the time period, how long has it taken the stock to do what it’s doing? I see this as time has passed, the average price over the last 50 days is gradually coming up. And I don’t know if we are going to get this, but if the stock happens to pull back again, maybe on a really weak market phase or something, I think you really want to buy this stock close to the 50-day moving average.
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