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Red day on Friday for NVIDIA

StockInvest.us, 3 weeks ago

NVIDIA

The NVIDIA stock price fell by -0.785% on the last day (Friday, 31st May 2024) from $1,105.00 to $1,096.33. During the last trading day the stock fluctuated 5.40% from a day low at $1,069.40 to a day high of $1,127.17. The price has risen in 6 of the last 10 days and is up by 16.19% over the past 2 weeks. Volume has increased on the last day by 13 million shares but on falling prices. This may be an early warning and the risk will be increased slightly over the next couple of days. In total, 60 million shares were bought and sold for approximately $66.31 billion.

On May 23, 2024, it was reported that Raymond James gave NVDA a "Strong Buy" grade with a "hold" action.

The stock lies in the upper part of a very wide and strong rising trend in the short term, and this may normally pose a very good selling opportunity for the short-term trader as reaction back towards the lower part of the trend can be expected. A break-up at the top trend line at $1,152.16 will firstly indicate a stronger rate of rising.Given the current short-term trend, the stock is expected to rise 11.75% during the next 3 months and, with a 90% probability hold a price between $914.88 and $1,287.55 at the end of this 3-month period.

NVIDIA

The NVIDIA stock holds buy signals from both short and long-term Moving Averages giving a positive forecast for the stock. Also, there is a general buy signal from the relation between the two signals where the short-term average is above the long-term average. On corrections down, there will be some support from the lines at $1,077.25 and $917.00. A breakdown below any of these levels will issue sell signals. Furthermore, there is a buy signal from the 3 month Moving Average Convergence Divergence (MACD). Some negative signals were issued as well, and these may have some influence on the near short-term development. A sell signal was issued from a pivot top point on Wednesday, May 29, 2024, and so far it has fallen -4.52%. Further fall is indicated until a new bottom pivot has been found. Volume rose on falling prices yesterday. This may be an early warning and the stock should be followed more closely.

On the downside, the stock finds support just below today's level from accumulated volume at $1,037.99 and $875.28.There is a natural risk involved when a stock is testing a support level, since if this is broken, the stock then may fall to the next support level. In this case, NVIDIA finds support just below today's level at $1,037.99. If this is broken, then the next support from accumulated volume will be at $875.28 and $857.74.

This stock may move much during the day (volatility) and with a large prediction interval from the Bollinger Band this stock is considered to be "high risk". During the last day, the stock moved $57.77 between high and low, or 5.40%. For the last week, the stock has had daily average volatility of 4.62%.

The NVIDIA stock is overbought on RSI14 and the RSI has been falling for the last couple of days. This together with the fact that the stock is in the upper part of the trend poses a possible good selling opportunity for the short-term trader. However, one should note that some stocks may go long and hard while being overbought. Regardless, the high RSI together with the trend position increases the risk and higher daily movements (volatility) should be expected. A correction down in the nearby future seems very likely and it is of great importance that the stock manages to break the trend before that occurs.

Several short-term signals, along with a general good trend, are positive and we conclude that the current level may hold a buying opportunity as there is a fair chance for NVIDIA stock to perform well in the short-term.

Check full NVIDIA forecast and analysis here.