Chart of the week – NVIDIA
NVIDIA looks set to resume its potential impulsive up move (medium-term technical analysis)
Source: CMC Markets (click to enlarge chart)
- The share price of NVIDIA (NVDA), a major US designer & manufacturer of computer graphics processors has continued to evolve within a medium-term ascending channel in place since its 8 March 2021 low of 115.70.
- The recent decline of -10.3% from its recent all-time high of 230.41 printed on 30 August has managed to stage a rebound right at a confluence zone of key technical elements; the 50-day moving average, the former medium-term swing high of 5 August and the close to the median line of the aforementioned ascending channel.
- In conjunction, the daily RSI oscillator has managed to stage a rebound at its 41% significant corresponding support level on 21 September which indicates a potential revival of medium-term upside momentum.
- If the 206.37 key medium-term pivotal support holds, NVDA may kick start another leg of potential impulsive up move sequence towards the next resistances at 236.15/238.60 & 246.10/249.70 (upper boundary of the ascending channel & Fibonacci expansion cluster levels).
- On the other hand, a daily close below 206.37 invalidates the bullish scenario for an extension of the corrective decline to target the next support zone of 176.60/171.80 (61.8% Fibonacci retracement of the recent up move from 13 May 2021 to 30 Aug 2021 & the lower boundary of the ascending channel).
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