NVDA Sets Up In An Ascending Base
With all the talk about AI, it makes sense that semiconductor stocks, which power this new emerging industry, are likely to be a focus on Wall Street. Nvidia, which is estimated to deliver monster earnings in 2024, has clearly been the leader of the new bull market. Unfortunately, NVDA has not offered many buy points over the last few months. Now it looks like Nvidia is setting up in an ascending base pattern. This is a rare pattern characterized by William O'Neil. The ascending base consists of three pullbacks of 10-20% over a period of about nine to sixteen weeks. While Nvidia does not fit this definition perfectly, it is sketching out a rough outline of this pattern. In addition, the consistent support at the 20-day ema is a sign of extreme strength. From a higher time frame, Nvidia has held above the 10-week line for months, and the weekly chart shows clear institutional accumulation.
I will be looking to purchase NVDA if it clears recent resistance with conviction. If I do purchase shares, I'll be certain to use a stop loss to keep my risk in check.
Risk right. Sit tight.
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