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Technical Analysis: NVDA Shows Potential for Rebound Amidst Market Volatility

StockInvest.us, 1 month ago

NVIDIA Technical Analysis:

NVIDIA Corporation (NVDA) recently closed at $407.80, marking a decrease of $3.81 or 0.93%. During the day's trade, it oscillated between a low of $392.30 and a high of $408.79. Despite the slight downturn, the company's market cap stands at an impressive $1.01 trillion. It traded a volume of 51.20 million shares, somewhat higher than its average daily volume of 49.73 million shares.

Several technical indicators provide data for further analysis. The 5-day Relative Strength Index (RSI) stands at 28, approaching oversold territory and indicating potential for an ensuing price reversal. The Moving Average Convergence Divergence (MACD) stands at 1.37 for a three-month period, presenting an opportunity for traders to monitor for signs of a future bullish trend.

NVDA has shown a downturn from its 50-day moving average of $446.57, however, it is well above its 200 -day moving average of $350.99. If the price can rebound to these levels, this could suggest a potential bullish market for NVDA. The immediate resistance zone is detected at $439.38 while the support line is at $405.00.

Fundamental Analysis:

The Earnings Per Share (EPS) stands at $4.13 with a high Price-Earnings (PE) ratio of 98.74, suggesting a higher than average earnings growth future expectation. NVDA is scheduled to reveal its latest earnings on November 21, 2023, which may further impact the stock's performance. The discounted cash flow (DCF) is calculated at $409.15, slightly above the last closing price.

NVIDIA The market consensus is a 'Buy' with 34 votes for buying, 4 holds, and 1 sell. This reveals a bullish sentiment among market analysts. The target prices range significantly from a low of $133 to an expected high of $800, with a consensus and median target price at $359.03 and $290 respectively.

News Analysis:

Recent news suggests diverse opinions about NVDA. While some reports suggest potential chances for downside, NVDA has also been highlighted as one of the best growth stocks for the next 10 years and was mentioned in the context of 'double-bottom base', a strong bullish indicator. The stock also temporarily slipped below its $1 trillion mark, indicating possible volatility.

Price prediction and Final Evaluation:

Based on technical indicators and market consensus, NVDA could bounce back from its current oversold situation. However, given the high PE ratio, earnings announcement, and the somewhat bearish news sentiment, a short-term price correction might be seen.

For the next trading day(November 01, 2023), the stock price might show slight instability but should stay around the support level of $405 or above. For the upcoming week, it could gradually recover towards its current resistance or the 50-day moving average, barring any drastic negative events or disappointing earnings announcement.

Considering all the factors, NVDA has potential long-term growth but exhibits short-term risk. Hence, it should be categorized as a 'Hold' for investors seeking stability and a 'Buy' for risk-tolerant, growth-oriented investors.

Check full NVIDIA forecast and analysis here.