Nvidia has screamed higher at the open on Wednesday, as we look at the interest rate markets have seen dropping rates, thereby offering more of a “risk on” environment.
NVDA
Nvidia has screamed higher in the early hours of trading on Wednesday as interest rates in America are dropping pretty significantly. There is a general risk appetite explosion during the session as there is talk of the United States and Iran coming a little closer to finding some type of real peace. This of course has people buying anything that seemed oversold and in the short term Nvidia most certainly was.
We had bounced from the $195 level, an area that previously had been resistance so technical traders would have loved this play anyway. The 50-day EMA sits below there, that also offers support. With rates dropping the way they have, that is more fuel for the fire and I do think that we will eventually try to get back to the $215 level.
Buy on the Dip Scenario for Nvidia
Will it be a straight shot higher? That, I don't know, I suspect probably not. So, this offers a little bit of a buy on the dip scenario for Nvidia, which quite frankly makes sense considering the price action we had seen over the last couple of weeks.
Ultimately, it's a market that will move with risk appetite, with AI news. For what it's worth AMD just launched in pre-market trading based on forward guidance that certainly didn't hurt Nvidia as well. This remains a stock that I think a lot of people want to own. It looks very bullish to me; I like buying little bits of stock here and there on dips to continue to build a bigger position. This is one of the “darlings of Wall Street” and will remain so.