NVIDIA Stock Rises To Records After Earnings Report; Here’s How To Trade It

(CTN News) – We can’t describe what we’re seeing right now among NVIDIA (NVDA) – Get Free Report shares as we can’t put it into words.

During the last check, the graphics-chip stalwart’s shares had gone up 27% and reached all-time highs. Currently, the market capitalization of the company is nearing the coveted $1 trillion mark.

Quarterly reports are driving the action in the business world. In spite of Nvidia reporting solid earnings and revenue results, it was the company’s management’s blowout guidance that ignited the jump to the upside.

The shares of the company have now gained 160% for the year and have risen by more than 250% from their 52-week low that was set back in October. Our last discussion on Nvidia outlined a long-term bullish scenario as the stock approached that level.

In addition, there was an area around $125 and an area around $110 that could be considered as potential buy zones. In spite of the perfect price action on the downside, the move back to the upside has been extreme – and that is putting it mildly.

How should NVIDIA proceed from here?

Nvidia stock trading

Those who purchased Nvidia stock based on the longer-term setups should be taking some profits now that it has reached an all-time high.

I would keep a close eye on the previous high near $346.50 during the course of the next few weeks. If the stock dips to this level, it could be a good opportunity to make a purchase, but if it breaks below this level, it could accelerate some short-term selling pressure.

As the bulls are now in control, Nvidia remains a buy-the-dips candidate, particularly when it pulls back to its key short-term moving averages, such as the 10-day, 21-day, and 10-week moving averages, which are all key short-term moving averages for the company.

Honestly, I think is a great example of combining technical analysis with fundamental analysis in a way that makes sense.

It is true that Nvidia faced fundamental challenges in the second half of 2022, however, tech investors knew that its long-term potential remained intact.

The combination of these technical levels combined with some key technical levels on the weekly chart gave buyers the confidence to step in and buy “when there is blood in the street,” as we like to say on Wall Street.

There is no doubt that the upside rally came faster than expected. In the end, though, it didn’t take long for the bulls to find themselves in a very favorable position as a result of the rally.

As a result, keep an eye out for the $400 area on the upside as well as $346.50 on the downside. Let Nvidia serve as a lesson for potential long-term buyers who want to engage in long-term investments.

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