Checking in on Nvidia (NVDA)

| About: NVIDIA Corporation (NVDA)
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Nick Perry (Schaeffer's Investment Research) submits: Earlier this month, I noted that Nvidia (ticker: NVDA) was pushing into a new high amid little optimism. Given market turmoil we have seen in the last couple of weeks, I thought I should check back in on it.

We have been following this stock for some time and the charts were getting a little cluttered so I removed some of the prior support/resistance levels that aren't currently in play. The weekly chart highlights the steady uptrend in place for the last year and a half. The stock is pushing into the upper boundary of its channel. The daily chart highlights the short-term action and offers a couple of levels to watch. The most obvious takeaways from all this are:

  • the broad market gyrations have had little impact on NVDA as the stock sits just below its annual high
  • the stock is at a key point as it pushes into the upper rail of the channel
  • I like the relative strength the shares have shown, but I would keep an eye on the how it acts at that upper rail. The stock is so far holding above the recent peak near 43, but is overbought and may need to rest before breaking out of that channel. I would begin to get cautious on a break of the longer-term support near 38.

    In terms of sentiment, the most interesting aspect to me remains the complete lack of enthusiasm from the Street. According to Zacks, just 5 of 19 analysts (26 percent) rank the stock with a "buy" rating.

    NVDA 1-Yr Chart