NVIDIA Short Term Bullish Reversal
By TradersHuddle Staff
New York, November 22nd (TradersHuddle.com) - Shares of NVIDIA Corporation (NASDAQ: NVDA) ended the prior trading session higher by 5.03%. NVIDIA's price action formed what is considered to be a bullish engulfing candle that could very well signal continuation of trend or reversal on ongoing weakness.
The stock spiked to the top of the S&P 500 on reports that suggested its chips will be back on the new round of Apple’s MacBooks.
A trough formed NVIDIA’s recent stock range where calculated support is defined at $14.07 and by a peak that established the resistance level at $15.13. The range could be used by traders planning their trades.
Traders wanting to establish a position in NVIDIA or traders that are already holding the stock can use the bullish engulfing pattern to their advantage. The pattern provides a defined risk as it shows where the bears were able to push the stock down, before the bulls stepped in.
NVIDIA Corporation designs, develops, and markets three dimensional graphics processors and related software. Its products provide interactive 3D graphics to the mainstream personal computer market.
The bullish engulfing pattern is a leading indicator that provides an alert to the bulls that the trend will continue or that there is an immediate reversal to the short-term weakness seen on the stock.
Below an Engulfing Bullish Candle Illustration:
