NVIDIA Corporation (NASDAQ:NVDA) shares are trading higher Monday as many companies in the broader tech sector are climbing up. The stocks are trading higher on a continued rebound after the recent COVID-19 omicron-driven selloff. NVIDIA looks to be breaking out of a bullish pattern Monday.
NVIDIA was up 4.40% at $309.45 at market close Monday.
See Also: Why NVIDIA Shares Are Rising
NVIDIA Daily Chart Analysis
- The stock looks to be breaking out of what traders call a bullish flag pattern. The stock is crossing pattern resistance and could be ready for a bullish move if buyers continue to enter the stock.
- The stock trades above both the 50-day moving average (green) and the 200-day moving average (blue), indicating the stock is seeing bullish sentiment. Each of these moving averages may hold as a possible area of support in the future.
- The Relative Strength Index (RSI) has been climbing the past couple of weeks and sits at 55 on the indicator. This shows that buyers are now winning after the stock was previously seeing more sellers than buyers.
What’s Next For NVIDIA?
The stock looks to be breaking out of a flag pattern and is pushing higher Monday. If the stock can continue to break out of the pattern and push above resistance, then it may see a strong bullish move higher. This is what bulls are looking for, followed by another period of consolidation so the stock can catch its breath. Bears are looking to see the stock be unable to break above this resistance and start to fall back toward the pattern support. A break below the pattern support area could hint a strong bearish push is coming.
Photo: Courtesy Nvidia
