- Nvidia looks like it’s going to jump a bit in the early hours here on Tuesday, as pre-market trading has in fact been bullish.
- Ultimately, I think you’ve got a situation where eventually Nvidia probably breaks above the all-time highs, and unlike some others, it does not have an earnings call until the end of the month.
- So, there isn’t much keeping it from rallying. Although keep in mind that Advanced Micro Devices later, or AMD, has an earnings call and that might cause a little bit of noise here if they say something about the overall market for chips.
But right now, I just don’t see that being an issue and Nvidia is clearly the leader. So, anything good over there will just be magnified over here would be my guess. Short-term pullbacks are very possible at this point in time, and I think they offer a bit of value that a lot of traders would be willing to get involved with. A break above the all-time high opens up a move to the $190 level while the $175 level offers support. The candlestick from the Friday session was rather impressive in the sense that while everything was imploding, Nvidia actually fought back.
NVDA Attracts More People Most Days
So, I do think this ends up being one of the stocks that everybody runs to. I have no interest in shorting this market and I do think that given enough time, the buyers will continue to push it to the upside. Having said that, we are a little overextended, but that seems to be the nature of things for Nvidia at times. And really in an environment like we have in the stock market right now, it does make a certain amount of sense. The traders are crowding into Nvidia. Just recognize that if we do get a pullback, there should be plenty of buyers out there willing to get involved.
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Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.