Forbes Money Nvidia Reports Earnings On May 24. Time To Reduce Holdings With The Stock Above Its Risky Levels Richard Henry Suttmeier Contributor Opinions expressed by Forbes Contributors are their own. Following May 23, 2023, 12:03pm EDT | Press play to listen to this article! Got it! Share to
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Twitter Share to Linkedin Signage with logo at the Silicon Valley headquarters of computer graphics hardware company Nvidia, ... [+] Santa Clara,
California, August 17, 2017. (Photo via Smith Collection/Gado/Getty Images). Getty Images Nvidia NVDA traded to its all-time intraday high of $346.47 on November 22, 2021. From this high the stock experienced a 68.7% bear market decline to a low of $108.13 set on October 13, 2022. NVDA is just 10% below its all-time high. Nvidia designs graphics processing systems for gaming, automobiles, architecture, engineering, and construction for data centers and software applications. NVDA is one of the most popular momentum stocks among traders and investors. The stock has an elevated p/e ratio of 125.56% and offers a dividend yield of just 0.05%. Nvidia beat its earnings-per-share estimate on February 22, 2023, missed estimates in November and August 2022 after beating estimates in 14 consecutive quarters between February 14, 2019 and May 25, 2022. The Daily Chart for Nvidia Daily Chart for NVIDIA Courtesy of Refinitiv Xenith. The daily chart for Nvidia clearly shows the 68.7% bear market for the stock from $346.47 set on November 22, 2021, down to $108.13 tested on October 13, 2022. The downside accelerated on April 20, 2022 when a death cross formed. This sell signal occurred when the 50-day simple moving average fell below the 200-day simple moving average. MORE FOR YOU
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Japan As The World’s Biggest Exporter Of Passenger Cars Lowe’s Q1 Earnings: What Are We Watching? Pick Your Poison How This Fearless Fund Beats The Market The 2023 bull market for NVDA was confirmed on January 25, 2023 after the formation of a golden cross with the stock trading at $193.23 versus its annual pivot at $193.31. In a golden cross buy signal, the 50-day simple moving average rises above the 200-day simple moving average. The horizontal lines on the chart from bottom to top are now the annual value level at $193.31, the monthly pivot at $256.17, the semiannual pivot at $296.26, and the quarterly pivot at $299.59. If there is a negative reaction to earnings, the downside is to $299.59 to $296.26. The Weekly Chart for Nvidia Weekly Chart for NVIDIA Courtesy of Refinitiv Xenith. The weekly chart for Nvidia is extremely overbought with the stock above its five-week modified moving average at $284.20. The stock is well above its 200-week simple moving average or ‘reversion to the mean’ at $156.10. The 12x3x3 weekly slow stochastic reading is at 92.77 which is well above the 90.00 level. This is a reason to reduce holdings pre-earnings. Keep in mind that the stochastic reading scales between 00.00 and 100.00 with readings below 20.00 oversold and above 80.00 overbought. A reading above 90.00 is a signal to reduce holdings. Trading Strategy: Reduce holdings with the stock above $299.59 and $296.26, or on strength to the all-time high of $346.47. Follow me on Twitter or LinkedIn . Richard Henry Suttmeier Editorial Standards Print Reprints & Permissions