NVDA & TSLA
These are 2 very different stocks in different sectors that do have one thing in common. Their charts have been on fire over the last several weeks! It's almost like money has been growing on trees for these 2 stocks.....
With such massive moves to the upside, investors have reason to be cautious. Is it time to prune some profits? Or should you continue to let the tree grow wild for a little bit?
First, take a quick peek at the charts for these companies and see how they are progressing towards their overall price targets. I will try to find out some answers, including whether to the take profits or not, and possibly even a trading strategy based on the results of the chart analysis. So let's get started!
nVidia Corporation (NVDA)
A healthy uptrend always has at least some correction or consolidation period as some take gains. As more sellers leave a stock, it is easier for a stock's share price to rise.
Well, that last consolidation period must have rid any remaining investors that were looking to sell their positions; NVDA's share price has screamed over 50% higher in the last 6 weeks. NVDA's share price hit a recent high of $168.50.
The previous full-length article for nVidia can be quickly accessed here "2/6/2017 – nVidia Corporation (NVDA)".
I also stated in that article what I thought was the key to watch for NVDA's share price:
The important take-away from the above chart for nVidia Corporation (NVDA) - watch the price activity at the $120 level. If NVDA's share price can break and close above that area, there is a possibility that the bullish scenario of reaching the 261.8% Target Line could be in play. The 261.8% Target Line resides around the $159 area.
Buying shares when NVDA's share price broke above the $120 area could have yielded gains of over 20% since the breakout. The breakout above the $120 area was only 7 weeks ago. A 20% gain in 7 weeks is pretty darn good. A target pullback zone for NVDA's share price was also identified in that update.
This first chart for nVidia Corporation (NVDA) will look at the 261.8% Target Line from my previous article. It is a 2 year weekly candlestick chart.
The 261.8% Target Line from the black Fibonacci Extension Tool had a $159 price target. NVDA's share price reached that upside price target 2 weeks ago. That upside price target was identified back in February in the above linked article.
I've overlaid 2 additional Fibonacci Extension Tools on the chart, a blue one and a green one. I'll discuss the results of what I see below.
Here is what I see based on the share price action that developed over the last few weeks…...
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