Flirting With A Five-Month High
As a trader you have to constantly keep searching for stocks that are
showing strength relative to the rest of the market and that can get
difficult when stocks see a prolonged downturn like the one we have just
experienced. But it’s that searching process that alerts you to new leaders
that can rise from the ashes of a bear market.
PowerRating) is a high-level graphics chip maker that bottomed with
tech last December at 27.50 but has been in an uptrend since then. With
several brief pullbacks along the way, NVIDIA recaptured its 200-day moving
average in mid-March and found support there ever since. On Tuesday, NVIDIA
gained 3.36 to 71.90 on heavier-than-average volume. News that the company
would supply chips to Dell’s high-level notebooks only added more positives to
an already solid-looking uptrend.
Thanks in part to Intel’s better-than-expected earnings, NVIDIA got a boost
in afterhours trading along with the rest of the tech sector. NVIDIA traded
up to the 74.50 level in afterhours action to its highest level since
November. I will be watching for some confirming volume and a hold at these
levels, and if NVIDIA can accomplish that, the next resistance will likely be
at its Nov. 6 high of 80.