Nvidia saves the day
If you are looking for a savior in the stock market today, it is back to Nvidia whose shares are up $25.73 or 6.3% at $434.21. The low price for the day toyed with the $400 level at $403.11 before jumping to the upside. The catalyst was Morgan Stanley’s reiteration of Nvidia as its top stock ahead of its earnings next week (on August 23).
The gains have propelled the NASDAQ index which is currently up 103.83 points or 0.76% at 13749.
- The S&P index is also up by 13.75 points or 0.31% at 4477.89.
- The Dow industrial average is not so lucky with a decline of -56 points or -0.16% at 35223.
Looking at the hourly chart of Nvidia, its move from its high price on July 14 to the low price at $403.11 was a correction of -16.10% (from $480.46). The price also corrected over 38.2% from the low reached the day before earnings last quarter when the company surprised the market with their projection for sales to reach $11 billion in the current quarter (the market was expecting $7 billion). Morgan Stanley anticipates them to reach and best that level when they announce next week. Their target price is $500.
On the top side, the 100 and 200-hour moving averages are near converged at $446.50. Those moving averages will be eyed as a barometer going forward for both buyers and sellers. Moving above would be more bullish technically. If the price corrects up to those levels and falls back down, that would keep the sellers in play and control in the short term.