NVIDIA Corporation NVDA remained stable on Wednesday amidst the S&P 500’s ascent following the Federal Reserve’s decision to maintain rates at its March policy meeting, hinting at the possibility of three rate cuts ahead this year.
Nvidia has recently been consolidating after a remarkable 148% surge from Oct. 31 to March 8, fueled by bullish sentiment in the artificial intelligence sector.
During Tuesday’s GTC Conference, Nvidia’s leadership outlined various growth strategies across the company’s hardware and software offerings, introducing its latest GPU architecture, Blackwell, as a successor to the Hopper architecture. This news propelled Nvidia back into Monday’s trading range after an initial dip at the start of Tuesday’s session.
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From a technical perspective, Nvidia’s recent consolidation signifies a necessary pause, helping to bring down the stock’s relative strength index (RSI) which had previously been in overbought territory from Jan. 9 to March 8.
The combination of Nvidia’s surge and consolidation has led to the formation of a potential bull flag pattern on the daily chart. If this pattern materializes and Nvidia continues its upward trajectory in the coming weeks, investors may consider diversifying through the Spear Alpha ETF SPRX.
SPRX is an actively managed fund that offers investors the chance to outperform passive market tracking. Noteworthy holdings include Nvidia, weighted at 10.59%, and Advanced Micro Devices, Inc AMD weighted at 8.06%.
Nvidia’s Future Trajectory: Nvidia has exhibited a series of bull flag patterns during its upward trend, with the most recent formation occurring between Feb. 28 and Wednesday. The potential price target, if Nvidia breaks out from the flag formation on increased volume, points to a 26% increase, suggesting a possible surge towards the $1,072 level.
- With momentum easing into Nvidia, the RSI has declined to approximately 65%. Further sideways movement within the flag pattern could provide the stock with additional upward momentum before the RSI reaches overextended levels.
- Traders anticipating bullish movement hope to see Nvidia surpass the upper descending trend line of the flag and break above the all-time high of $974 from March 8. Conversely, bearish traders seek accelerated selling pressure, leading Nvidia to close below the 21-day exponential moving average, which would invalidate the bull flag scenario.
- Nvidia faces resistance levels at $919.13 and its all-time high, with supports at $870.85 and $794.80 below.
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