Nvidia Shakes Out And Sets Up
Updated: Aug 21, 2021
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.
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