Stock Chart of the Week - 8/15/22 to 8/19/22
Nvidia ($NVDA) takes my spot as my favorite chart of the week. The monthly timeframe coupled with the daily chart looks like a prime candidate for strong momentum in the next few weeks. Of course, the market will likely have a significant effect on how it plays out however if the market continues its strength, this presents a great risk/reward opportunity. At the end of the day, we want the biggest winners with controlled risk and Nvidia has been known to be a strong momentum stock.
Monthly Timeframes We got a great bounce off our 34/55 EMAs which is where this name found its bounce back in 2018-2019. Price also held that 142 level which is now a key point of interest for the future.
Daily Timeframes: Our EMAs are all beginning to turn blue as price closed above them all last week. We also closed directly at the downtrend line and key price zone which if we can make a move above could be explosive. The last thing to note here is the strong accumulation volume forming with many above-average volume days being blue.
Nvidia is a high beta momentum name which if it can break out here I'd like to be a part of a bigger potential move. Looking at the daily chart, the most obvious target would be that longer-term trendline near 230 however there could be a good amount of supply near the 210 level. This level gave price some good bounces in the past so it is reasonable to believe it may act as some resistance if that time comes. A stop on this play could be a close below the recent pivot low or EMAs as well. A 2 risk/reward or greater is always what I am looking for. Want to watch me cover Nvidia? Check out my watchlist for this upcoming week below
Want to receive updates on all my content for free? Subscribe to www.YocumsCharting.com below 👇