NVIDIA Technical Analysis (NASDAQ:NVDA)
Technical chart patterns are studied in depth by people who strongly believe in technical analysis. These type of investors who look at trading charts or technical stock charts are usually traders rather than value investors. Just by looking at the NVIDIA stock price one can't take a trading decision. A trader needs to find a chart pattern, which is a clear cut pattern formation on the NVDA stock chart which creates a trading signal.
View technical indicators like moving averages (SMA and EMA), and bollinger bands for NVIDIA. The technical analysis form of NVIDIA stock analysis tries to understand the market by studying the stock market trend itself as opposed to other aspects like the company's fundamentals.
NVIDIA Moving Average:
Moving averages help predict the price direction of NVDA stock based on certain triggers, but with a lag, and form building blocks for other technical indicators like the MACD and bollinger bands. One needs to choose the duration of a moving average depending on the investment objective and investment horizon. For periods greater than 100, it takes a larger and longer NVDA stock price movement for the moving average to change course.
NVIDIA Bollinger Bands:
Bollinger Bands developed from the concept of trading bands and can be used to measure the high-low range of NVIDIA stock price relative to previous trades. NVIDIA bollinger bands show that the stock price is $168.1, upper band is 29.26, lower band is 21.91, and the average is 25.59.
NVIDIA Moving Average Convergence Divergence or MACD:
The moving average convergence divergence or MACD is a technical indicator which helps gauge the stock price trend, as the indicator is useful in understanding the strength, direction and momentum of the stock price. The NVIDIA MACD indicator can be used to identify bullish and bearish trends for the stock.
NVIDIA Relative Strength Index:
This technical indicator compares the relative strength or weakness of a stock. It measures the magnitude of rise or fall in stock price movements . If the RSI of NVDA stock goes above 70 it could indicate an overbought condition, and if it goes below 30 it could signal an oversold position. .