Skip to main content
Publish date:

Nvidia - How to Trade After the Stock Hit All-Time Highs

Nvidia hit new all-time highs this week but has since dipped with the overall market. Here's how to trade the stock with earnings on deck.

Nvidia  (NVDA) - Get NVIDIA Corporation Report is on the rise Thursday, up about 0.6% in afternoon trading.

The gains add to the stock’s recent run, with shares still hovering above the key $300 mark.

Thursday’s action also comes as CEO Jensen Huang shows off some of the company’s latest products and advances. What is usually a jam-packed GTC Conference is now being done virtually.

However, that’s not the only reason Nvidia investors are excited. Earlier this week, shares hit new all-time highs. Despite the stock’s slight dip since, shares are still up 73% from the March lows.

That’s more than double the broader market’s percentage gain, while Nvidia’s also outpacing peers like Intel  (INTC) - Get Intel Corporation (INTC) Report and Advanced Micro Devices  (AMD) - Get Advanced Micro Devices, Inc. Report. Plus, the analysts love it

Let’s take a closer look at the charts.

Nvidia is a holding in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells NVDA? Learn more now.

TheStreet Recommends

Trading Nvidia

Daily chart of Nvidia stock.

Daily chart of Nvidia stock.

For now Nvidia stock is holding uptrend support (blue line), as each dip continues to get bought by the bulls. They are either short-term traders taking advantage of the current momentum or investors willing to pay a premium for the company’s impressive growth.

That growth is worth even more in times like this, with the coronavirus negatively impacting most businesses.

Nvidia is expected to report earnings next Thursday, on May 21st. If shares rally into the event, look for the stock to clear the $315 mark. Back above $320 and Nvidia stock can rally back to its prior all-time near $327.

Above that opens the door to an even larger pre-earnings run.

If shares dip — either ahead of earnings or after the results — look to see if support comes into play from the 78.6% retracement and the rising 20-day moving average. If that’s the case, bulls will remain in control.

On a larger breakdown, such as if the overall market begins to tumble, look to see if the 50-day moving average and 61.8% retracement buoy Nvidia stock. This may very well offer investors a solid buying opportunity provided its earnings are solid.

If we get a violent selloff in the stock, look to see if the 200-day moving average gets another visit.