NVDA Analysis: Share Price Reaches 2-month High on News of New Chips

FXOpen

Less than a month ago, US officials tightened rules on sales of high-end artificial intelligence chips to China. And yesterday, from the SemiAnalysis newsletter, it became known that Nvidia has developed new chips called HGX H20, L20 PCIe and L2 PCIe, which are not subject, in whole or in part, to existing export restrictions to China.

The news about the new chips gave bullish momentum to the Nvidia stock market.

The NVDA stock price chart shows that:
→ the price crossed the peak on October 12 (this is peak D, the formation of which we assumed in the analysis of the NVDA stock price on September 14);
→ NVDA share price shows bullish dynamics after a false breakout of the psychological level of USD 400 per share at the end of October;
→ the price dropped at the end of yesterday's trading day, forming a potential false breakout of the October peak. It seems that the bears have become more active, trapping overly optimistic buyers. The 4-hour chart shows a bearish engulfing pattern.

Note that the market was extremely volatile at the end of August, as evidenced by the ATR indicator. In this active market, large participants had enough counter liquidity to cover long positions (take short positions). And now, with the price rising to the levels of this important August range, the bulls may exhaust their confidence. To overcome it, strong drivers are needed, which can happen during the publication of the company's report for the 3rd quarter — it is scheduled for November 21.

Buy and sell stocks of the world's biggest publicly-listed companies with CFDs on FXOpen’s trading platform. Open your FXOpen account now or learn more about trading share CFDs with FXOpen.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Latest from Shares

After Earnings Report, NVDA Stock Price Exceeds $1,000 Coinbase (COIN) Stock Price Holds at Key Support Level The Share Price of Alibaba (BABA) Has Reached Its Yearly High The Stock Price of PepsiСo (PEP) Is Retracting from Its Yearly High Moderna goes AI and experiences share price rally

Latest articles

Weekly Market Wrap With Gary Thomson: Nasdaq 100, NVIDIA, EUR/USD, Gold price
Financial Market News

Weekly Market Wrap With Gary Thomson: Nasdaq 100, NVIDIA, EUR/USD, Gold price

Get the latest scoop on the week's hottest headlines, all in one convenient video. Join Gary Thomson, the COO of FXOpen UK, as he breaks down the most significant news reports and shares his expert insights. Read the latest news

Analytical Tesla Stock Predictions for 2024, 2025 – 2030 and Beyond
Trader’s Tools

Analytical Tesla Stock Predictions for 2024, 2025 – 2030 and Beyond

Tesla's stock has experienced significant volatility since its IPO in 2010, driven by its significant technological advancements and status as a leading electric vehicle producer. This article explores Tesla's recent price history, analyses its outlook for 2024 and 2025, and

Commodities

Gold Price Drops Over 3.6% in 2 Days

The price of gold has fallen by more than 3.6% over 2 days, as indicated by today's XAU/USD chart. The day before yesterday, at the opening of the daily candle, the price of gold was $2421 per ounce,

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.