Nvidia Still Climbing but Not Quite as Fast

 | Jun 15, 2017 | 3:55 PM EDT
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Nvidia  (NVDA) was trading around $20 per share in 2014 and 2015. You could have bought all you wanted at that price. Less than two years later, the price is up in the $150-$160 area. Shares are up eightfold but we still have mostly bullish charts and indicators.

Prices have held up amazingly well in recent sessions as many other stocks have seen declines. Let's check the latest charts and indicators to see what might come next.

In this daily bar chart of NVDA, above, we can see how prices gapped higher last month after a five-month consolidation. Investors who used that sideways period to buy were rewarded with a quick 50% markup. NVDA is above the rising 50-day moving average line and of course the rising 200-day moving average line.

Volume was heavy in the past six weeks as new longs jumped in. The daily On-Balance-Volume (OBV) line moved up with the rally, telling us that buyers of NVDA were more aggressive. The only "but" on this chart is the 12-day momentum study, which shows momentum has slowed from May to June. A period of slowing momentum is not a sell signal but should only be considered a "heads up" that prices are acting differently.

In this weekly chart of NVDA, above, we can see the big rise that has unfolded over the past three years. Prices are above the 40-week moving average line and the weekly OBV line is pointed up. The MACD oscillator is bullish, too.

Bottom line: Other than momentum slowing, I find the charts of NVDA pointed higher. After the strong gains in May and June, I wouldn't be surprised if we see a sideways trading range for a couple of months similar to the price action we saw earlier this year after the November/December rally.

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