NVDA finds buyers at key support level
NVIDIA Corporation (NVDA) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, NVDA ended the month 7.01% higher at 379.91 after gaining $11.91 (3.24%) today, strongly outperforming the Nasdaq 100 (1.96%). The bulls were in full control today, moving the market higher throughout the whole session. Ending with a strong close near the high of the day sets a bullish note for the next session.
Daily Candlestick Chart (NVDA as at Jun 30, 2020):
Tuesday's trading range has been $10.35 (2.78%), that's below the last trading month's daily average range of $12.47. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for NVDA.
One bullish candlestick pattern matches today's price action, the White Candle.
After trading down to 370.70 earlier during the day, the share bounced off the key technical support level at 371.96 (S1). The failure to close below the support might increase that levels importance as support going forward. When prices bounced off a significant support level the last time on June 25th, NVDA actually lost -3.53% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could accelerate should prices move above the close-by swing high at 385.70 where further buy stops might get triggered.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for NVIDIA. Out of 375 times, NVDA closed higher 57.07% 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 60.27% with an average market move of 1.58%.