Henry James: NVDA Is About to Rip Faces!

Stocks often fall in and out of favor with the market all the time. Chipmaker Nvidia (NVDA) has been the market’s darling stock for the past two years on the back of AI. However, shares periodically go through a slump.

That’s been the case with shares over the past six months, which have seen nearly zero returns. The stock has dropped over 15% from its all-time high. But that kind of pullback could be a healthy sign of a future rally.

Technical analysis indicates that shares have pulled back to the $125-130 range. That’s where Nvidia has seen resistance when trending higher. Now with shares pulling back, what was once resistance is now likely to be support.

Plus, Nvidia’s recent moves are similar to moves in the past few months. Shares make a mini-head-and-shoulders pattern, moving higher, then lower, before a new rally higher.

Looking at the stock’s relative strength index, or RSI, Nvidia is nearing oversold levels. The last time shares were this oversold, they bounced from under $100 in August to $125 in September. Traders like to use tools like RSI for those kind of bounce moves.

A similar move today would send Nvidia shares back to their 52-week highs near $150.

Technical indicators suggest that Nvidia is oversold and ready to bounce higher in the final trading days of 2024.

To see the full analysis on Nvidia and why it’s set to rally higher, click here.