Chipmaker Nvidia (NVDA) surprised many with the news that it's buying Arm Ltd. from SoftBank Group. NVDA shares rose 5.8% Monday.
Jim Cramer called the deal a "game changer" during Monday night's Mad Money program and in his Real Money article here.
We last looked at NVDA on Aug. 21 saying that, "Traders looking to raise their sell stops could bump them up to a close below $450 (the mid-point of anticipated support) from a close below $440. The $600 area remains our price objective."
The shares have stayed above our $450 risk point during the correction this month so let's visit with the charts again.
In the updated daily Japanese candlestick chart of NVDA, below, those prices made a high in early September and corrected down to the $475 area staying above the rising 50-day moving average line.
The On-Balance-Volume (OBV) line dipped in early September and has since steadied itself. A rising OBV line will tell us that buyers are back and they are being more aggressive than sellers.
The Moving Average Convergence Divergence (MACD) oscillator has been moving lower from a take profits sell signal but the two moving averages that make up this indicator have been narrowing and we could see a fresh buy signal in the days ahead.