In this daily NVDA bar chart below, I see a mostly positive picture. Prices have been in an uptrend since a low in October and a higher low in late December. Prices are trading above the rising 50-day moving average line and above the rising 200-day moving average line. The 50-day moving average crossed above the 200-day moving average in January, signaling a bullish buy signal from the golden cross. The trading volume histogram doesn’t show me an increasing trend or expansion to confirm the price gains.
In this weekly NVDA Japanese candlestick chart below, I see a mixed chart picture. Prices are trading above the 40-week rising moving average line. The weekly trading volume shows a decrease from August levels.
The weekly OBV line shows an increase from October. The MACD oscillator is bullish and in an uptrend above the zero line.
In this NVDA daily point and figure chart below, I see an upside target in the $319 area. A trade at $220 could weaken the picture.
In this second NVDA point-and-figure chart below, I used weekly price data. Here, the software projects a price target in the $405 area.
In hindsight, the NVDA charts didn’t correct further and started up. For now, look for more wins.
Receive an email alert every time I write an article for Real Money. Click +Follow next to my author of this article.
Source : realmoney.thestreet.com