What possible catalyst could push $NVDA to new highs? – November 1, 2024
Dan Fitzpatrick here at StockMarketMentor.com. I’m looking at NVIDIA ( NASDAQ: NVDA ) today.
This is what the stock looked like today, on Friday, there’s a little rebound from Thursday’s selloff. It looked to me like we had a little climax selling here. But there are many things wrong with this stock, I’m talking in the short term. Long-term, it’s still in this consolidation mode, and my mojo still tells me we could run up to $200.00 over the next few quarters.
We just need to get out of this cluster here, to begin with, that’s what I’m thinking long-term. But short term, you can see where the stock is rolled over here. It looks like 140.00 is the deal. What I’m looking at here is that 140.00 is a really key level. Right there, it’s where it absolutely tagged and bounced off. Way back in the day, back in June, it came up here a little bit. Everybody got all lathered up, and now it’s down below here.
This is a stock that is absolutely just mired in no man’s land. If their earnings are going to be reported on the 20th. I don’t know if that’s a confirmed date, so I don’t know when this is. But I know that right now 140.00 is a key resistance level. And I don’t really expect much upside from this between now and then. It’s probably going to wallow around here.
The only thing that could possibly change, in my mind, with this kind of tenner, the only thing that could possibly change would be an unforeseen catalyst between now and earnings. I don’t know what that could be other than maybe this getting added to the Dow.
There’s a report late today that NVIDIA ( NASDAQ: NVDA ) is going to be added to the Dow Jones Industrial Average ( DJI: .DJI ). It’s replacing Intel ( NASDAQ: INTC ), which probably should have been replaced a long time ago. On the morning of Friday, that’s a week from today, so before the open on Friday.
Now, where did the stock hit today? Essentially, it hit at 140.00, 139.83, but you can see what’s going on here. Guess when the announcement was made? I think it was right about here, about 5:20, and the stock runs up right away. I think this is a big deal, remember, this is after hours on Friday.
My sense is, we’re going to get through this on Monday. I have no idea whether this is going to go to new highs or not. As you know, there are probably a couple of things going on next Monday and Tuesday that might have everybody take their eyes off the ball.
But I will say this, now that NVIDIA ( NASDAQ: NVDA ) is added to the Dow there’s going to be a whole boatload of Mutual Funds and Dow tracking funds that are going to have to buy NVIDIA ( NASDAQ: NVDA ) before the Market opens on Friday. I think that’s going to provide a big lift to this stock. Plus it gets it back in the news.
This is my suggestion, I’m not even going to give you a stop on this because it depends on why you owning this stock. Maybe your stop is at $100.00, or maybe it’s at 139.30, it’s totally your choice. What I’m saying is, I like the way, now, this stock is trading right around this zone. I would still suggest just really, really watch 140.00 as the key level.
You are going to see big volume in this on Monday, that’s for sure. But what you want to see is the stock, not just going above 140.00, but having a really strong close, closing at the high of the day, right at the close, the high price of the day, on big volume. If that happens you will probably see continued moves to the upside. But if instead, the stock runs up here and then just falls back below 140.00 and closes right around there, then it’s probably going to be a dud. That’s the way I trade anyway.
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