NVDA breaks above 50-day moving average for the first time since March 10th
NVIDIA Corporation (NVDA) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
NVDA finished Thursday at 257.24 gaining $11.62 (4.73%), underperforming the Nasdaq 100 (5.72%). Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (NVDA as at Mar 26, 2020):
Thursday's trading range has been $12.01 (4.73%), that's far below the last trading month's daily average range of $20.51. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for NVDA.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top.
NVIDIA managed to close above the 50-day moving average at 253.70 for the first time since March 10th. When this moving average was crossed above the last time on March 10th, NVDA actually lost -5.60% on the following trading day. Unable to break through the key technical resistance level at 261.08 (R1), the stock closed below it after spiking up to 262.01 earlier during the day. The failure to close above the resistance might increase that levels significance going forward. After having been unable to move above 261.82 in the prior session, the share ran into sellers again around the same price level today, missing to move higher than 262.01.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
As prices are trading close to March's high at 284.89, upside momentum could speed up should the market mark new highs for the month.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to previous High" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for NVIDIA. Out of 593 times, NVDA closed higher 53.29% 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 56.83% with an average market move of 1.32%.