- The market fit in Nvidia looks like it’s going to open a little bit higher during the trading session here on Thursday as pre-market trading has been positive.
- That’s rather impressive considering we jumped about 4 % during the previous session and now it looks like we are heading toward the all-time highs.
- Short-term pullback should end up in buying opportunities and if we can drift into the gap, I think a lot of people would be interested in picking up Nvidia shares.
Thursday is the ex-dividend date, but really, I don’t think it matters. It’s one cent a share and the way this thing is appreciated, that’s barely noticeable. Nvidia has reported that they expect to have a trillion dollars in cash soon. And that’s part of what everybody is excited about. But passive investing owns so much Nvidia stock at this point in time, that you’d be hard pressed to find somebody who doesn’t own it. Pension funds, mutual funds, ETFs, everybody has a piece of Nvidia in their portfolio, and therefore it becomes the default asset to start buying.
Consolidation? It’s Possible as Well
The 50 day EMA sits at the $169.57 level and is relatively flat. So, we might be entering a little bit of a consolidation here. That would make a certain amount of sense considering that we had shot straight up in the air since the middle of April. After all, in the middle of April, Nvidia was trading at about $98 a share. We saw prices as high as about $184 a share just a couple of weeks ago. So, a little bit of working off of the froth might not be the worst thing whatsoever for the markets. With that being said, I like the idea of buying Nvidia, but I want to do it on dips. I don’t want to chase it. The only way that I would buy it higher is if we broke above the $185 level on a daily close because then it becomes a breakout trade.
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Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.
