Nvidia Stock Splits, Forms Bullish Pattern
NVIDIA Corporation (NASDAQ:NVDA) began trading on a 4-1 split-adjusted basis Tuesday morning and opened the trading session at $187.21.
The multinational graphic processing technology has caught the eye of retail traders on social media and was a top-trending stock in r/WallStreetBets Tuesday.
The company became of interest after Nvidia demoed new platforms developed to advance real-time graphics for video games at its virtual Game Developer Conference 2021. Nvidia showed off a number of games running on its GeForce RTX 3060 GPU paired with a MediaTek Kompanio 1200 Arm processor to demonstrate how its advanced graphic technologies can be used across a wide range of devices.
Despite trending on Reddit, Nvidia’s stock has pulled back recently from its July 6 and 7 all-time high of $208.75 in consolidation.
The Nvidia Chart: Nvidia’s stock was unable to make a new all-time high on June 7, which created a bearish double top pattern on the daily chart. The stock then retraced about 14% and on Monday bounced from a support level near the $178 level.
On Tuesday, the stock was trading within a $6 range between $181.64 and $187.72, which is within Monday’s price range. If Nvidia’s stock does not break above Monday’s high or low, it will create an inside bar pattern, which is considered bullish.
Nvidia’s stock is trading below both the eight-day and 21-day exponential moving averages (EMAs), which is bearish. The eight-day EMA is trading on top of the 21-day EMA, which shows indecision, and the bears will want to see the eight-day EMA cross below the 21-day EMA. The stock is trading about 25% above the 200-day simple moving average, which indicates overall sentiment in Nvidia is bullish for the longer-term.
Bulls want to see a single inside bar or a double inside bar on Wednesday and then for big bullish volume to come in and break Nvidia’s stock up above Monday’s high so it can regain the eight-day and 121-day EMAs. If it can regain the levels as support, it could pop over resistance at the $194.20 mark.
Bears want to see big bearish volume come in and break Nvidia down below Monday’s lowest price and for the stock to lose support at $178.13. If it were to trade below the level, it could fall down toward $162.77.
NVDA Price Action: Shares of Nvidia were trading down 1.15% at $185.63 at last check.
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