Nvidia Corp. (NVDA) is the Stock of the Day Friday at Real Money. The stock was trading up about 5%-6% after its Q2 beat with revenue down 17% Y/Y. Let's see what the charts look like.
In this daily bar chart of NVDA, below, we can see a large equilateral triangle formation going back to November. NVDA has made lower highs from November to April to July and higher lows from December to early June to August.
Prices are below the declining 200-day moving average line and the rising 50-day line but those two averages are likely to be tested today with NVDA's stronger opening. The volume bars do not show a bullish pattern with increasing volume which is typical for a triangle (usually volume decreases through a triangle pattern).
The On-Balance-Volume (OBV) line has moved up and down with the price action this year. The Moving Average Convergence Divergence (MACD) oscillator is currently below the zero line but has been crossing a number of times since February.
In this weekly bar chart of NVDA, below, we can see that the slope of the 40-week moving average line has been negative for nearly a year. Prices could close above it today.
The weekly OBV line has moved sideways the past 12 months and thus not foreshadowing an upside move.
The MACD oscillator narrowed to the point of a downside crossover below the zero line - this indicator was also not anticipating an upside move.
In this Point and Figure chart of NVDA, below, we can see the software generated a downside price target of $138 before the earning's reaction.
Bottom line strategy: NVDA was trading up in pre-market action but the dominant trend has been sideways for several months. NVDA is probably going to need more sideways price action signs of accumulation before a sustained upside move gets underway.