Keep an eye on Nvidia (NVDA).
After dropping from about $500 to $410, the tech stock appears to have found strong double-bottom support. From its current price, we’d like to see it again challenge $500 with the AI boom still red-hot. Also, if you pull up a two-year chart of NVDA, you can see it’s over-extended on RSI, MACD, and on Williams’ %R.
The last time NVDA became this technically oversold, it bounced from about $400 to $500 in just under a month. Hopefully, that’ll happen again this time, too.
Helping, Morgan Stanley says the pullback is a buying opportunity.
The recent decline in Nvidia shares over potential concerns stemming from a large tech company cutting its requirements for the H100 GPU next year is a “buying opportunity,” investment firm Morgan Stanley said, as quoted by Seeking Alpha.
NVDA last traded at $432.21 – up $7.53 on the day.