Regardless of what is going on around the world, it looks like Nvidia is going to hang onto the range.
Nvidia (NVDA)
Nvidia has gapped lower to kick off the trading session on Friday but has bounced a bit to show signs of life. All things being equal this is a market that I think continues to be somewhat surprising due to the fact that the market continues to find buyers underneath in spite of the fact that people are freaking out around the world about a bunch of different things at the same time.
The geopolitical issues obviously are a major factor, but what I find interesting is that regardless of what happens Nvidia stays in this same range. As we are getting closer to the bottom than the top of the range, I think it makes sense that there is a little bit of support and that is how I look at this. I look at this as a buy on the dip market.
Support Levels and Technical Indicators
The 200-day EMA sits right around the $173 level and the $170 level underneath there offers support also as it is the bottom of the range. The 50-day EMA currently sits just above the $185 level and if we can get above there then I think we have a real shot at this market going to the $195 level as that was a major barrier.
Ultimately this is a market that I think continues to see a lot of back-and-forth behavior but in general I do think long-term Nvidia is probably a winner. After all artificial intelligence isn't going anywhere regardless of what people seem to think in the short term.
With that being the case, I like the idea of buying it at lower levels like this and then eventually we break out and hang on to a bigger move. Ultimately this is a range bound market that has been very resilient if you think about it considering that everything else seems to be coming unraveled.