NVIDIA NVDA is a Strong Stock Getting Even Stronger
We believe that “Strong Stocks Get Stronger,” and NVIDIA (NVDA) is proving this concept true today.
What’s the lesson and where might this stock be heading now?
Let’s see:
We’re seeing the Weekly Chart above where price gently drifted higher from 2014 into 2015.
However, a strong bullish rally on high volume and high momentum developed at the end of 2015.
A natural pullback took price to the rising 50 week EMA in February ahead of an even strong rally that continues to this day.
2016 has been an abnormally strong year for shares of NVDA as buyers rushed to own a stock in a strong trend.
Momentum spiked to new highs and volume remained strong – all of which favored higher prices.
We’re seeing those prices develop now as a strong stock powers even higher, rushing toward $70.00.
Here’s the development of the strong uptrend through 2016:
When we’re looking to swing trade, we look for stocks in persistent uptrends, particularly those where we’re seeing strong volume and momentum.
If that’s the case, we then look to buy pullbacks (or retracements) to rising moving averages.
Check out our specific lessons and methods for our “Perfect Pullback Trading Strategy.”
Keep in mind that we DO NOT buy when price is overextended above the rising moving averages, as is the case now.
If you’re new to trading, focus your attention on stocks – and trends – like this.
Follow the trend; follow the money.
Follow along with members of the Afraid to Trade Premium Membership for real-time updates and additional trade planning.
Corey Rosenbloom, CMT
Follow Corey on Twitter: http://twitter.com/afraidtotrade
Corey’s book The Complete Trading Course (Wiley Finance) is now available along with the newly released Profiting from the Life Cycle of a Stock Trend presentation (also from Wiley).
It’s really going from strength to strength, but it will be interesting to see when that pull back comes because eventually it’s going to come. I would love to get into this, but it’s vital that we keep things simple and straight forward because only then we will be able to perform nicely. I get plenty of help with OctaFX broker through their wonderful setup to do with lowest possible spread starting from 0.1 pips to high leverage up to 1.500 plus mighty bonus up to 50%, it’s all truly spectacular.