In an "Executive Decision" segment of Mad Money Tuesday night, Jim Cramer checked in with Jensen Huang, founder, president and CEO of chipmaker Nvidia (NVDA) , a stock making new highs for the calendar year.
Nvidia makes technology to make the impossible, possible, Huang said. The company's chips are powering the cutting edge of innovations in artificial intelligence, machine learning, gaming and the data center.
Huang showed off one of those innovations, a real-time, Nvidia-powered simulation of the fluid dynamics involved in landing a spacecraft on Mars using only booster rockets. He explained the simulation slows the spacecraft from 12,000 miles an hour to zero in just six minutes, and requires the same computing power as rendering 25,000 movies all at the same time.
In the daily bar chart of NVDA, below, we can see that prices have been consolidating their October gains this month with sideways price action. Prices are still above the rising 50-day moving average line as well as the bullish 200-day moving average line. A bullish golden cross of these two averages can be seen in August.
The daily On-Balance-Volume (OBV) line shows a rise from early June telling us that buyers of NVDA have been more aggressive. The Moving Average Convergence Divergence (MACD) oscillator has been above the zero line since late August and will probably turn higher to a fresh buy signal as prices strengthen again.
In the weekly bar chart of NVDA, below, we can see a bullish picture on this longer time frame. Prices are above the rising 40-week moving average line.
The weekly OBV line is bullish and so is the MACD oscillator.
In this first Point and Figure chart of NVDA, below, we used weekly close-only data and we can see a potential upside price target of $231 being projected.
In this second Point and Figure chart of NVDA, below, we use weekly high/low data. Here a longer-term price target of $244 is being projected.
Bottom-line strategy: Continue to hold longs on NVDA. Traders could raise stop protection to $195 and investors can risk below $190 for now.