NVDA runs into sellers around 363.70 for the forth day in a row
NVIDIA Corporation (NVDA) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
NVDA finished the week 6.31% higher at 361.05 after gaining $10.04 (2.86%) today on high volume, notably outperforming the Nasdaq 100 (0.38%) following Thursday's earnings report. Today's close at 361.05 marks the highest recorded closing price ever. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (NVDA as at May 22, 2020):
NVDA reported earnings of $1.8 per share after Thursday's market close. With analysts having expected an EPS of $1.7, NVIDIA Corporation beat market expectations by 5.9%. The company's last earnings report was released on Feb. 13, 2020, when NVIDIA Corporation reported earnings of $1.89 per share surpassing market expectations by 13.9%.
Friday's trading range has been $15.17 (4.3%), that's above the last trading month's daily average range of $11.32. Things look different on the weekly timeframe, where the market's trading range of the last week has been below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for NVDA. Prices continued to consolidate within a tight trading range between 347.22 and 363.70 where it has been caught now for the whole last trading week.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bullish Outside Bar. The last time this happened on March 27th, NVDA gained 5.09% on the following trading day. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
Unable to break through the key technical resistance level at 363.50 (R1), NVIDIA closed below it after spiking up to 363.70 earlier during the day. The failure to close above the resistance might increase that levels importance going forward. The stock was sold again around 363.70 after having seen highs at 362.10, 361.72 and 363.50 in the last three trading sessions. Obviously there is something going on at that level.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the 13 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. Though it is usually interpreted as neutral, it has actually shown to be bullish for NVIDIA. Out of 26 times, NVDA closed higher 61.54% 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 69.23% with an average market move of 3.35%.