NVDA climbs to highest close ever
NVIDIA Corporation (NVDA) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, NVDA finished the month 11.76% higher at 424.59 after edging higher $0.03 (0.01%) today, strongly underperforming the Nasdaq 100 (1.78%). Today's close at 424.59 marks the highest recorded closing price ever. Trading up to $5.21 lower after the open, NVIDIA managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (NVDA as at Jul 31, 2020):
Friday's trading range has been $11.53 (2.73%), that's slightly below the last trading month's daily average range of $13.53. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently significantly lower than usual for NVDA. Prices continued to consolidate within a tight trading range between 408.37 and 428.85 where it has been caught now for the whole last trading week.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top. The last time a Bullish Spinning Top showed up on July 22nd, NVDA actually lost -2.96% on the following trading day.
Prices are trading close to the key technical resistance level at 431.69 (R1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling might speed up should prices move below the nearby swing low at 411.81 where further sell stops could get activated. With prices trading close to this year's high at 431.69, upside momentum might accelerate should the stock be able to break out to new highs for the year.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "3 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for NVIDIA. Out of 165 times, NVDA closed higher 55.76% 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 61.21% with an average market move of 1.86%.