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Trading Nvidia as It Makes All-Time Highs on Earnings Beat

Sell Nvidia? Buy the dip? Here's how to trade Nvidia now that the stock has made new all-time highs after earnings.

Shares of Nvidia  (NVDA) - Get NVIDIA Corporation Report are rewarding the bulls who stuck with the stock, jumping 8.8% on Thursday.

The rally comes after Nvidia delivered strong earnings and despite a mixed day in the markets — even though the Nasdaq is now up about 1% on the day.

The company beat on analysts’ expectations for earnings and revenue results in the most recent quarter and even provided better-than-expected guidance for next quarter.

Simply put, Nvidia just keeps on delivering.

The results even gave Advanced Micro Devices  (AMD) - Get Advanced Micro Devices, Inc. Report a boost on the day, as shares hit new all-time highs as well. 

If you remember, that company also delivered a top- and bottom-line beat and above-consensus guidance. The fade after the rally led to an amazing buying opportunity.

It didn't take long for AMD to run to new all-time highs after that, which is exactly what Nvidia did this morning.

Trading Nvidia Stock

Daily chart of Nvidia stock.

Daily chart of Nvidia stock.

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Nvidia stock has been downright explosive and in late October, shares gapped up to new all-time highs. At the time we wrote:

“Obviously, bulls would like to see the rally continue. They might think, why not go on a run like Tesla  (TSLA) - Get Tesla Inc Report? From here, I would love a minor pullback or some consolidation. As long as Nvidia remains above the 10-day moving average and the $230 breakout level, bulls remain in control.”

Well gone on a run like Tesla is exactly what Nvidia has done. At today’s high, Nvidia stock was up 67.5% from the Oct. 4 low.

From here, it’s a little harder to navigate the stock if you haven’t already been long Nvidia.

A close over the prior all-time high near $323 keeps Thursday’s high in play at $327.60. Above that and we could see a further push to higher prices.

Specifically, it could put the $343 to $345 area on the table, which is the 423.6% extension. It’s also the 161.8% extension of the recent range from the Nov. 17 low to the Nov. 9 high.

I’d consider this a notable area, but a move above it could put $350 or higher on the table.

On the downside, a move below Thursday’s low could put recent resistance of $307 back in play and open the door to a test of the 10-day moving average.

We all love a rally, but some rest would do Nvidia some good.