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Nvidia (NVDA) – Get a report stocks haven’t seen a great advance lately and the company’s stock split doesn’t seem to be helping.
While the stock has had an impressive rally – climbing 55% from the May low to the July high – we’ve seen Nvidia lose air of late.
This also came as Advanced Micro Devices (AMD) – Get a report stocks also struggled in the long term. The struggling stocks even drew a “hard eye” from TheStreet’s Jim Cramer.
It doesn’t help that the larger markets have also been under pressure.
While the stock showed impressive strength on Monday as the market collapsed, it came under pressure again on Tuesday, the day its stock split went into effect.
Nvidia and Advanced Micro Devices have stakes in Jim Cramer’s Action Alerts PLUS investment club. Want to be alerted before Jim Cramer buys or sells NVDA or AMD? Find out more now.
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Daily chart of the Nvidia share.
Graphic courtesy of TrendSpider.com
A glance at the graph shows this powerful run from May to early July before Nvidia’s painful correction.
The shares hit the $ 200 level which was my price target in June (at the time that price target was $ 800 after adjusting for the stock split).
Jim Cramer: Buy Nvidia Stock Today
Later, I looked to the $ 215 level as a possible upside target, which is the 261.8% extension of the 2021 range. Nvidia didn’t quite get there. , but he approached it.
Markman on tech: beware of Nvidia stock split
By all accounts, the past few days have been quite volatile with the $ 188- $ 190 area not providing support. The 10-week moving average is in for now.
From there, you have to keep an eye on these two levels. The bulls want to see Nvidia break above $ 190 and clear the 10-day moving average.
If the stock can do so, it calls the 21-day moving average back into play, followed by more than $ 200. It also puts the bulls back in control and allows for a potential return to historic highs.
In contrast, a break in the 10-week moving average brings this week’s low into play. Below this week’s low, and a 50-day moving average test may be in order. This does not mean, however, that it will necessarily be the lowest.
Nvidia is a great company and the stock has traded very well lately. As a result, we are looking at it from the long side and see the dips as an opportunity.
But if the techniques deteriorate, we will have to move away from it as a commercial vehicle for now.
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