Nvidia Shakes Out And Sets Up
Updated: Aug 21
Semiconductor stock Nvidia had an interesting week as it shook out below its' 50-day moving average intraweek only to close strongly above this key level on volume on Thursday. This type of action is extremely constructive as it rids a stock of weak holders leaving only those with conviction onboard. Moves like this often precede powerful uptrends as the last holders wishing to sell are knocked out before the stock runs higher. I've owned NVDA since May, and the cushion I have on this position allowed me to hold through this week's move below the 50-day line. I've learned that patience is a virtue in life and in the stock market, and I'm never in a hurry to sell a big liquid leader like NVDA when it continues to act right.
Full Disclosure: I currently own NVDA.
Disclaimer: This information is issued solely for informational and educational purposes and does not constitute an offer to sell or a solicitation of an offer to buy securities. None of the information contained in this post constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. From time to time, the content creator or its affiliates may hold positions or other interests in securities mentioned in this blog or the associated Twitter and Instagram feeds. The stock or stocks presented are not to be considered a recommendation to buy any stock or stocks. This material does not take into account your particular investment objectives. Investors should consult their own financial or investment adviser before trading or acting upon any information provided. Past performance is not indicative of future results.