NVDA pops to highest close ever
NVIDIA Corporation (NVDA) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
NVDA finished the week 15.18% higher at 289.79 after surging $19.01 (7.02%) today on high volume, significantly outperforming the Nasdaq 100 (0.29%) following Thursday's earnings report. This is the biggest single-day gain in over three years. The last time we've seen such an unusually strong single-day gain on Monday, NVDA gained 1.87% on the following trading day. Today's close at 289.79 marks the highest recorded closing price ever. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (NVDA as at Feb 14, 2020):
NVDA reported earnings of $1.89 per share after Thursday's market close. With analysts having expected an EPS of $1.66, NVIDIA Corporation beat market expectations by 13.9%. The company's last earnings report was released on Nov. 14, 2019, when NVIDIA Corporation reported earnings of $1.78 per share beating market expectations by 12.7%.
Friday's trading range has been $8.92 (3.11%), that's above the last trading month's daily average range of $6.26. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for NVDA.
Crossing above the upper Bollinger Band for the first time since Wednesday, prices have shown unusually strong upward momentum in the short-term. This could either indicate a potential buying climax after which prices might head back down towards the mean of the Bollinger Bands at 253.73 or signal the beginning of a strong momentum breakout leading to even higher prices.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Stock Earning Report based market condition "Trading Day post strong Earnings Report" stand out. Although it is usually interpreted as neutral, it has actually shown to be bullish for NVIDIA. Out of 25 times, NVDA closed higher 60.00% 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 72.00% with an average market move of 3.67%.