In this analysis, we take a look at both technicals and fundamentals for Nvidia (NVDA)
Technicals
- We see a text book reverse head and shoulders pattern - It seems as though the right shoulder has also finished forming, and our neckline remains around our support at $285 - Our all time high resistance sits at $315 - The Relative Strength Index is forming higher lows, and continues in an uptrend as a sign of trend strength - The Moving Average Convergence Divergence (MACD) also shows increasing bullish histograms after a golden cross, indicating signs of momentum - Normally, a breakout from the reverse head and shoulders pattern is resulted by an increase by the same degree of the depth of the neckline
Fundamentals
- The operating margin for Nvidia sits at 26.10%, gross at 62%, and net at 25.6. - Nvidia generates considerably more profit, after expenses are accounted for, compared to its counterparts
What We Believe
Overall, Nvidia shows bullish technicals, and sound fundamentals. As a solid stock, it appears that Nvidia could move on to test new all time highs.
I wouldn't buy this with your neighbor's money. Way overpriced.
tonystarrrk
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Totally in agreement with assessment. Btw nice catch IHS pattern. Sitting on trendline support as well as structural support rn. $331 and some change easily. Break that, $388.90 before reversal and entry for short position.