November 22, 2024
Nvidia (NVDA) Just Reclaimed the 20-Day Moving Average #NewsUnitedStates

Nvidia (NVDA) Just Reclaimed the 20-Day Moving Average #NewsUnitedStates

CashNews.co

After reaching an important support level, Nvidia (NVDA) could be a good stock pick from a technical perspective. NVDA surpassed resistance at the 20-day moving average, suggesting a short-term bullish trend.

The 20-day simple moving average is a popular investing tool. Traders like this SMA because it offers a look back at a stock’s price over a shorter period and helps smooth out price fluctuations. The 20-day can also show more trend reversal signals than longer-term moving averages.

Similar to other SMAs, if a stock’s price moves above the 20-day, the trend is considered positive, while price falling below the moving average can signal a downward trend.

NVDA has rallied 11.3% over the past four weeks, and the company is a Zacks Rank (Hold) at the moment. This combination suggests NVDA could be on the verge of another move higher.

The bullish case only gets stronger once investors take into account NVDA’s positive earnings estimate revisions. There have been 7 revisions higher for the current fiscal year compared to none lower, and the consensus estimate has moved up as well.

Investors may want to watch NVDA for more gains in the near future given the company’s key technical level and positive earnings estimate revisions.

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