Nvidia’s stock gained close to 4 percent Wednesday and is trading near its 2019 highs. But the stock is also down more than 40 percent from its October all-time highs.
Taking a look at Nvidia’s chart dating back to early 2017, shares held right at its 200-week moving average, Maley said during a Thursday CNBC “Trading Nation” segment. Since then, the stock managed to trade “sideways for a while” before gaining momentum in February.
Why It’s Important
If Nvidia’s stock ends the week north of its 200-week moving average, the stock could “shoot up in a major way,” Maley said. If it doesn’t break above the key technical indicator, the stock could “roll over,” he said.
“This is a stock that’s had a lot of momentum money flow out of the stock,” Maley said. “So if it can rally further anytime soon, that momentum money’s going to flow back in and be very positive for the stock.”
Susquehanna’s Stacey Gilbert added to the conversation and said Nvidia’s recent acquisition of Mellanox will “fill a revenue hole” that Nvidia lost from the crypto collapse. Looking forward, investors are hoping management will quantify possible synergies from the merger, she said.
In the meantime, Nvidia’s stock “may not be our favorite” to ow,n but nevertheless is one “we like to own,” the Susquehanna trader said.
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