What It Will Take for Nvidia to Rally Again

[Trading With Larry Benedict]( What It Will Take for Nvidia to Rally Again By Larry Benedict, editor, Trading With Larry Benedict Chipmaker Nvidia (NVDA) was one of the biggest beneficiaries of last year’s AI rally. It hovered around a low $140 in early January 2023. Then a combination of impressive earnings beats and massive investor demand for AI-related stocks pushed NVDA above $500 by late August. And NVDA’s market cap soared beyond $1.2 trillion. But after hitting that August high, NVDA’s rally stalled. Even another big earnings beat in November failed to give NVDA any traction above the $500 level. It just consolidated sideways. Yet now NVDA looks to be setting itself for another move. So let’s see how things could pan out from here… Recommended Link [ATTENTION: Digital Dollar Could Send this $0.25 Play Skyrocketing]( [image]( In just a few days, the U.S. government could announce [this mandatory recall on the U.S. dollar…]( And replace it with a new digital dollar. And that could send [this $0.25 alternative investment skyrocketing.]( This is the same type of investment that’s already attracting the attention of legendary investors and billionaires like Elon Musk, Mark Cuban, and George Soros. If you know the necessary steps to take right now, not only will you protect your money, you could come out of this shift wealthier than you ever thought possible. But you need to act fast. [Click here to get the exact steps to take right now.]( -- A Clear Trend Change You can see in the chart below how NVDA rallied right from the start of last year. By May, NVDA’s stock price had doubled since January. NVDA then gapped higher due to its Q1 2023 earnings beat and bullish demand forecast. That jump saw NVDA beat its previous November 2021 high. Nvidia (NVDA) [chart] Source: e-Signal The chart shows classic bullish signals throughout NVDA’s uptrend. - Buying momentum remained strong. The Relative Strength Index (RSI) stayed in the upper half of its band (above the green line). - The 10-day moving average (MA, red line) crossed above the longer-term 50-day MA (blue line) in January. Both MAs bullishly rose. But in August you can see a distinct change in trend. NVDA topped out in August after its Q2 earnings. And the stock transitioned into a sideways trend. That’s shown by the 50-day MA turning flat. Yet the 10-day MA crossed the 50-day MA multiple times in both directions – a common rangebound pattern. This rangebound period coincided with the RSI flicking back and forth between the upper and lower parts of its range. Then NVDA topped out in November after its Q3 earnings. And the RSI’s down move petered out around support (green line). From there, NVDA tried to rally but couldn’t break up through short-term resistance (orange line). Take another look: Nvidia (NVDA) [chart] Source: e-Signal Yet the RSI recently retested and held support (orange circle). So the chart is telling us that NVDA could be setting itself for another run. What am I looking for next? Free Trading Resources Have you checked out Larry's free trading resources on his website? It contains a full trading glossary to help kickstart your trading career – at zero cost to you. Just [click here]( to check it out. An Emerging Up Move For NVDA to rally from here, we’ll first need to see the RSI remain in the upper half of its range. The longer it can remain in this range, the stronger any potential rally could be. The next test for NVDA’s rally will be for the stock to break out and gain traction above short-term resistance. Plus, I’ll be watching our two MAs… As you can see, the 10-day MA has recently been bullishly moving above the 50-day MA while the 50-day MA gradually grinds higher. If the 10-day MA accelerates above the 50-day MA, then that will further confirm any emerging up move. Regards, Larry Benedict Editor, Trading With Larry Benedict Mailbag Do you expect another NVDA rally? Let me know your thoughts here at feedback@opportunistictrader.com. IN CASE YOU MISSED IT… [AI IS BORING!]( “AI’s all over the news. And AI stocks have gone on a tear. But there’s a huge problem with AI: it’s BORING! Consider ChatGPT, the most hyped AI… You ask it a question, and it produces an answer. It’s just a word machine. Yawn! I’m tired of boring AI, even though I used [what Harvard calls the “Super Platform driven by AI”]( to make over a million bucks in 2022. So forget ChatGPT! [Let me show you an exciting AI.]( –Colin Tedards [Here’s my 2-minute demonstration of Elon’s AI in action.]( [image]( [The Opportunistic Trader]( The Opportunistic Trader 55 NE 5th Avenue, Delray Beach, FL 33483 [www.opportunistictrader.com]( To ensure our emails continue reaching your inbox, please [add our email address]( to your address book. 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