Took the remaining of my Nvidia long at $10.88 to wait out for another pull back again. This stock has moved too quickly and am now looking for a pull back into the lower channel again before initiating new positions. Stochastic & MACD also are confirming the share is starting to become overbought.
The Nvidia trade that I entered into yesterday worked quite well. Too bad because of the very negative sentiment of the market place today, this stock had to be taken down along with the rest of the other equities as seen with the long upper shadow. I hope the sell off will not get too carried away for Nvidia and maintain itself above the bottom yellow trendline around the $8.40 level. But if the breakout occurs with strong volume, I would have to cover and re enter when it stabilizes. Based on the MACD and stochastic RSI I kind of doubt that this stock would go any lower.
Finally bought shares of Nvidia today at $8.59 as it is nearing the trendline and MACD and stochastic RSI is already charting oversold levels. Will add some more if it dips some more but as of now, I believe this stock is already undervalued. Finally got something that's investible rather than tradeable.
Nvidia is getting close to my target around the bottom channel after the failed breakout of the upper channel.
Will initiate my position tomorrow. Looks like this is a nice long to hold. They’ve still got so much interesting product pipelines to release, I don’t see it as the end of the world for them.
15 minutes before the close now and it looks like NVDA is close to making a full bar bearish candlestick. the 200 day MA support got pierced through and by it looks like it wants to head back to the bottom support line around the $8.40 area, volume is also confirming it big time. Will hold off on this purchase until next week.
Nvidia looks very interesting at these levels. From a technical perspective, the 150 moving average is certainly smoothing out and the 10, 20, 50 & 100 day moving average is already crossing the 150 day. Looking for a bounce off the $9.40 support level around the 200 day moving average for entrance. Nvidia is considered a true long term investment by now.
Fundamentally
The chip sector has been suffering tremendously in this recession. Revenue was down to $664.2 million in Q1 2009 compared to the same quarter last year which was $1.2 billion. Loss were recorded at $201.1 million which was a significant improvement compared to Q4 2008.