NVIDIA NVDA Keeps Impressing with New Uptrend Highs

Aug 11, 2016: 3:08 PM CST

NVIDIA (NVDA) continues its strong bullish uptrend, giving us another example of the superiority of our “Strong Stocks Getting Stronger” concept of swing trading.

Here’s the ongoing uptrend on the Daily Chart with a caution as seen from the Hourly Chart we should know:

NVIDIA will report earnings after the close Thursday so be sure to note the updated price reaction after the close.

For now, we have a strong bullish uptrend in motion from the February 2016 reversal.

Price more than doubled from the $25.00 level to the current high near $60.00 per share.

While the uptrend is strong, note how overextended price remains from its 20 day EMA and the persistent negative momentum divergence as shares approach the $60.00 level.

Here’s our “Pay Attention” Signal from the Hourly Chart:

We see numerous bullish retracement trades triggering on the movement up toward the $60.00 level.

However, momentum failed to keep pace with price as it formed lower highs during the intraday uptrend.

This locks in a Negative Momentum Divergence and makes us cautious, expecting a possible pullback to the rising 20 day EMA.

However, $60.00 will be the critical pivot and if earnings are much better than expected, buyers may overrule the caution signals from the divergences to bust price through the $60.00 Round Number target.

Either way, it should be interesting!

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Corey Rosenbloom, CMT

Afraid to Trade.com

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