Here’s your “trade” on Nvidia ($NVDA) – November 4, 2024
Dan Fitzpatrick here at StockMarketMentor.com. I want to look at NVIDIA ( NASDAQ: NVDA ) today or actually this week.
This is a weekly chart, you can see the zigzags here. This is the high here, 143, we’ll call it 144.00, we might even bump it to 145.00. But anyway, right up here is the resistance level, and that’s a pretty formidable level. I’ll put this in a daily time frame here and you can see where in October I think it had been tested about four different times.
It never really was surpassed. And so right now, as I see it, there’s really no trade on this until and unless this runs up to a new high. I think a lot of people have been waiting for this thing to break out, and I’m also waiting for it. But waiting for it does not mean predicting it. This thing could go either way.
However, I think it is telling that it was reported on Friday, after the close, that NVIDIA ( NASDAQ: NVDA ) would be added to the Dow Jones Industrial Average ( INDEXDJX: .DJI ), it’s replacing Intel ( NASDAQ: INTC ). It will be added to the Dow Jones Industrial Average ( INDEXDJX: .DJI ) on Friday morning before the open. So you’re going to see a lot of volume here towards the end of the day.
Typically, on an instance like that, you’ll actually see a big pop in a stock, Oh my gosh, it’s being added to the Dow. Big deal, it’s one of 30 stocks, it’s like, be still my beating heart. Anyway, the stock did go up a little bit after hours. It opened up higher a little bit today, but then ultimately it came up here and just drifted back with the rest of the market.
What that’s telling me is, nobody really cares too much about the addition of NVIDIA ( NASDAQ: NVDA ) into the Dow ( INDEXDJX: .DJI ). I would expect this to be kind of a nothing burger. With respect to just those dynamics, I would expect this to be nothing by the end of this week.
I think the election is obviously going to create some kind of volatility. I don’t see there being a huge amount of volatility after the election, for the simple reason that everybody’s looking for it. And so you’ve got to wonder if, when everybody’s looking for the same thing you’re ever going to find it. I think it will probably take several days or a long time in order to come up with whoever the “winner” is in this election.
Looking at NVIDIA ( NASDAQ: NVDA ), I don’t see this reacting one way or another this week to the Dow ( INDEXDJX: .DJI ) or the election. Because by the way, whoever wins the election is not going to change NVIDIA’s ( NASDAQ: NVDA ) business model one bit.
Right now with NVIDIA ( NASDAQ: NVDA ), I think there is nothing to do unless the stock breaks out to a new high. Now, they report earnings on the 20th, that is in a few weeks, about 2 ½ weeks. So with earnings on the horizon, is there really any sense that NVIDIA ( NASDAQ: NVDA ) is going to run up through this resistance into earnings? I don’t think so.
I think that if you want to be farting around with this, and day trading it or something, you’re better off doing it on the double ETF, the NDVL, where you get two times your money on the upside. And you can get decent swings in this if that’s the way you want to trade this. But just overall I don’t see NVIDIA ( NASDAQ: NVDA ) doing much of anything between now and when they report earnings.
So in every single video that I do here, it’s not like I’m saying, “Hey man, this is your massive trade, go, go, go.” I just want to talk sometimes about stocks. Where sometimes the best trade is the waiting game, to just wait for this thing to make a move. And I think the move is on a breakout above there.
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