Technical Analysis – Can Nvidia unlock 1,000 level?
Nvidia’s stock flatlines as FOMC minutes, Q1 earnings eagerly awaited
Stock fluctuates within short-term bullish channel; support at 910-920
Nvidia’ stock bounced off its 20-period simple moving average (SMA) in the four-hour chart on Monday with scope to start a new bullish phase, but the 950 zone came to cap the action ahead of the company’s Q1 earnings due later on Wednesday.
The bulls may not give up yet, according to the technical picture. The positive cross between the 20- and 50-period SMA is promoting the short-term upward pattern, which is developing within a channel. Moreover, with the RSI fluctuating comfortably above 50 and moderately beneath 70, and the price trading below the upper Bollinger band, the risk is tilted more to the upside than to the downside.
Should the record high of 973 open the door to more uncharted territory, the price might print a new higher high near the channel’s upper band at 1,000 or higher at 1,035 where the tentative ascending line which connects the 2021 and 2024 highs is placed. Another victory there might lift the price up to the 1,070-1,100 region formed by the broken ascending line drawn from January 2024 and the 161.8% Fibonacci extension of the previous downleg.
In the event the price stays below 950, reducing the odds for a continuation higher, all the attention will turn again to the 20-period SMA and the protective territory of 910-920. A break lower could stall near the 61.8% Fibonacci of 885 and the 50-period SMA. If not, the sell-off could next test the 50% Fibonacci of 860 ahead of the key 840 territory, where the stock paused a couple of times since March. Failure to pivot there would worsen the short-term outlook, squeezing the price closer to the 200-period SMA and the 800 round level.
Summing up, although Nvidia’s stock started Wednesday’s session with mild losses, the short-term risk has yet to shift to the bearish side, especially as the price still holds within a bullish channel.Related Assets
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