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Nvidia Stock (NVDA) Is Aimed To Test The $1000 Psychological Level

Nvidia Stock (NVDA) Is Aimed To Test The $1000 Psychological Level

Nvidia, currently listed under the symbol NVDA, recently attained a momentous accomplishment when its market capitalization ascended to $2 trillion. Nvidia is positioned marginally below tech titans such as Apple (AAPL) and Microsoft (MSFT) on the list of the most valuable companies globally. The upsurge ensued after Nvidia's financial results surpassed anticipated levels.

The company momentarily surpassed $2 trillion during trading on Friday, settling around $1.997 trillion by midday. Contributing to a new closing record for the S&P 500 index, Nvidia's shares increased by 16% on Thursday. Additionally, the Nasdaq Composite, which is heavily weighted with technology equities, was propelled by gains. Nvidia's stock has increased by more than 60% as of this date.

Should you include Nvidia Stock (NVDA) in your trading portfolio?

Let’s have a look at the complete outlook from the NVDA market analysis:

Nvidia Earnings Report Review

Following a strong performance in the fourth quarter and the optimistic Q1 sales outlook, Nvidia's stock started to surge on Wednesday. For the three months ending January 28, adjusted earnings increased to $5.16 per share from $0.88 a year ago. Moreover, the revenue tripled to $22.10 billion, exceeding Wall Street's expectations. Nvidia's revenue forecast for the first quarter is $24 billion, or 2% less.

Nvidia disclosed unprecedented revenue from its data centers, propelled by strong demand for generative artificial intelligence. 

In an earnings conference call, Colette Kress, chief financial officer, emphasized the robust demand for the Hopper graphics processing unit computing platform, which is utilized for training extensive language models and generative AI applications. As noted by Kress, demand for their next-generation products exceeds supply.

Nvidia's remarkable financial performance and positive prognosis were lauded by analysts, who acknowledged the company's fortitude in the face of modest contributions from China. Notwithstanding the obstacles presented by export controls in China, analysts anticipate substantial expansion prospects for Nvidia's data center revenue. 

Goldman Sachs predicted that revenue from data centers would increase by triple digits, anticipating that numerous industries and regions would continue to invest in AI infrastructure. Nvidia's development potential continues to be a concern, however, if the company cannot recover significant revenue from China.

Nvidia Stock (NVDA) Overextended Above The 261.8% Fibonacci Level

Nvidia Stock (NVDA) Overextended Above The 261.8% Fibonacci Level


The above image represents the weekly price of Nvidia stock (NVDA), where the current price trades above the 281.8% Fibonacci Extension level from 349.29 high to 110.05 zone. 

Within the bull run, a re-accumulation phase is found at the 497.15 to 390.10 area, from where the price consolidated before forming a new impulsive wave. 

The ongoing buying pressure represents a clear bullish trend, supported by a strong fundamental. However, picking a stock for investment from the “Rising Rocket” scenario is often challenging for investors. Investors should be skeptical about making decisions in this condition, even if the trend is clear.

A bull run is present in technical indicators as the dynamic 50-day EMA is below the current price with an upward slope. Moreover, the 200-day Simple Moving Average is below the 50 EMA line, with bullish traction, which is a confluence of bullish factors for this stock.

The secondary window shows the same outlook, where the RSI failed to reach the 50.00 neutral level and rebounded to the overbought area. It clearly indicates that long-term bears failed to grab the wheel, and bulls have regained momentum. A clear trend is visible from the Average Directional Index (ADX) line, which shows a rebound without visiting the 20.00 neutral line.

Based on the weekly price forecast of Nvidia Stock (NVDA), a minor downward correction is pending as a mean reversal. Therefore, selling pressure from the current price with consolidation and a bullish reversal from the 50-day EMA level could be a conservative long opportunity, targeting the 1000.00 psychological level.

The aggressive approach is to observe how the price reacts on the daily chart, which could offer another long opportunity without having considerable correction.

Nvidia Stock (NVDA) Ichimoku Cloud Analysis

Nvidia Stock (NVDA) Ichimoku Cloud Analysis


In the daily chart, NVDA trades higher above the dynamic Ichimoku Cloud zone, supported by the rising Kijun Sen support.

In the secondary window, bears failed to hold the momentum, as shown in the MACD Histogram line, while the Traders Dynamic Index is above the 50.00 area.

In the future cloud, both lines show upward traction, suggesting ongoing buying pressure. Moreover, a bearish correction is present to the 661.09 support level from where the recent bull run came.

In that case, the buying pressure is valid as long as the price trades above the 661.09 support level, which may increase the momentum towards the 1000.00 level.

On the other hand, a deeper correction is possible towards the dynamic Ichimoku Cloud zone, but a reversal might come after having a daily candle below the 550.00 level.

Is Nvidia Stock (NVDA) A Buy?

Based on the current market outlook, NVDA is more likely to extend the buying pressure and reach the 1000.00 psychological level. Investors should closely monitor how the price reacts on the daily chart, where a consolidation and a bullish reversal from the near-term support line could offer a trend trading opportunity.

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