Point Of Inflection
Traders are always on the lookout for inflection points, or areas where a
stock could likely change direction or — at the very least — find support prior to
a reversal. Nvidia
(
NVDA |
Quote |
Chart |
News |
PowerRating) is stacking up indications of a possible
swing back to the upside in the upcoming sessions.
11:35:51
Nvidia (NVDA)
is pulling back to an area near the 50% retracement of one leg higher and the
38.2% retracement of another. Note the previous bounce near this level on
April 26. NVDA is currently down 1.90 to 76.24 and is holding a 3-month
relative strength rating of 95 from TradingMarkets.com.
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The stock is pulling back to an area near the 38.2% Fibonacci
retracement of leg one off the March low and the 50% retracement of the second
leg higher off the 50-day MA and the April low. Traders were alerted to the
stock via the java applet on Friday, when it pulled back 20% from the high
of three days prior.
Will Nvidia continue higher? Of course there are no guarantees,
but at the very least I will keep an eye out for the next swing higher if it
occurs, and be ready for it. Make use of the java applet alerts and get into the
habit of looking at the daily and intraday charts on stocks that generate the
alerts, and you, too, will be ahead of the game.
Until tomorrow,
Duke