NVDA breaks back above 20-day moving average
NVIDIA Corporation (NVDA) Technical Analysis Report for Oct 09, 2019 | by Techniquant Editorial Team
NVDA ended Wednesday at 180.71 gaining $3.48 (1.96%), outperforming the Nasdaq 100 (1.13%). Closing above Tuesday's high at 180.64, the market confirmed its breakout through the prior session high after trading up to $2.05 above it intraday.
Daily Candlestick Chart (NVDA as at Oct 09, 2019):
Wednesday's trading range has been $3.51 (1.95%), that's below the last trading month's daily average range of $4.86. Things look different on the weekly timeframe, where the market's trading range of the last week has been way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for NVDA.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top. The last time a Bullish Spinning Top showed up on October 4th, NVDA gained 1.30% on the following trading day.
The stock managed to close back above the 20-day moving average at 177.92.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling could accelerate should prices move below the nearby swing low at 176.50 where further sell stops might get triggered. Further buying could move prices higher should the market test September's close-by high at 188.40.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 20" stand out. Its common bullish interpretation has been confirmed for NVIDIA. Out of 142 times, NVDA closed higher 52.11% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 57.75% with an average market move of 1.56%.