Nvidia Corp. (NVDA) is climbing before the opening bell here on Monday morning and is the Stock of the Day at Real Money. Let's check out the charts from Friday for Nvidia, which is a holding of Jim Cramer's Action Alerts PLUS charitable trust.
In this daily bar chart of NVDA, below, we can see a potential base formation with bottoming action in November-January and then a retest at the end of May/beginning of June. NVDA ended June above the declining 50-day moving average line but below the still-declining 200-day line. Prices could rally to the underside of the 200-day line in the near future where it might encounter some selling. The highs in April in the $190-$195 area are another zone where selling could be seen.
The daily On-Balance-Volume (OBV) line has moved up and down with the price action this year. The OBV line is pointed up but it is below its April zenith. The trend-following Moving Average Convergence Divergence (MACD) oscillator is back to the zero line and could cross soon to an outright go-long signal.
In this weekly bar chart of NVDA, below, we can see that prices are below the declining 40-week moving average line, but that line could be tested this week. The weekly OBV line is interesting in that there is only a shallow decline in the fourth quarter of 2018, suggesting that long-term investors have not liquidated. The MACD oscillator is poised for a cover-shorts buy signal.
In this Point and Figure chart of NVDA, below, we can see an upside price target of $184 projected. Not a breakout over the April highs (look for the 4 and the 5 on the chart), but a start.
Bottom line strategy: Pajama traders seem to be excited this Monday morning. I am not inclined to buy a higher opening and I do want to see how the markets close today.