Can Nvidia continue on its upward trend?
Nvidia surged nearly 10% from yesterday’s low to high after the semiconductor maker issued an upbeat forecast for the third quarter. The company is forecasting revenue of $6.94 billion which is much higher than analyst expectations of $6.57 billion.
The company’s share price has remained in a wedge formation over the past few months, as highlighted in the chart below between the descending resistance line and ascending support line.
Source: Admirals MetaTrader 5, NVDA, Daily - Data range: from Nov 10, 2020, to Aug 19, 2021, performed on Aug 19, 2021, at 8:30 pm GMT. Please note: Past performance is not a reliable indicator of future results.
Last five-year performance:
- 2020 = 121.93%
- 2019 = 76.25%
- 2018 = -31.01%
- 2017 = 81.28%
- 2016 = 223.85%
If the share price can break through top resistance, then a new record high is likely. Some traders may traditionally trade the share price inside of the range using reversion to the mean trading strategies.
However, in this instance the wedge formation is relatively small suggesting a breakout is more likely, making it one for the watchlist.
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