Nvidia share price was up in Thursday’s premarket session as excitement returned to AI stocks. Nvidia (NASDAQ: NVDA) was up by 2.8 percent to trade at $120.32, building on the momentum created following Wednesday’s 12.81 percent spike. A return to the $120s territory is a psychologically significant move, as it restores the company to its stock split price.
Interestingly, Nvidia’s return to the upside is not its own making. The current fuel was provided by a combination of AMD’s forecast-beating quarterly earnings results announced on Tuesday, and Microsoft’s pronouncement that it would not cut down on its investment in AI infrastructure. Nvidia’s position at the helm of the AI microchips race have seen its share price rise more than both AMD and Microsoft in the hours following the news. Also, another forecast-beating earnings news on Wednesday by another tech giant, Meta, pointed to more headroom for the AI industry, adding propulsion to Nvidia.
Nvidia share price looks likely to continue the upside going by the momentum indicators on the 2-hour chart. First, the price is well above the middle Bollinger Band, and making an attempt to break above the upper band. That means a move below the $112.56 mark could signal a reversal and potential near-term bearishness. Meanwhile, the MACD indicator line is also above the signal line, strengthening support for the upside.
NVDA price looks to continue upwards if the buyers keep the price above the 121.58 pivot mark. That could result in further gains to encounter the first resistance at 124.00. However, further control by the buyers at that point could result in a break above that mark, potentially strengthening the upside momentum to test 126.80. On the other hand, a move below 121.58 will signal control by the sellers. That could find the first support at 118.46, beyond which the upside narrative will be invalid. Also, extended control by the sellers could result in further declines to test 115.72.
This post was last modified on Aug 08, 2024, 08:19 BST 08:19