NVIDA: A Not So Hidden Gem

NVDA (NASDAQ) has managed to re-grow value from the recent COVID-19 lows, it reached those levels back in early may and now has exceeded past them. More recently they also exceeded past some analysts expectations of the companies recent earnings report and increasing the value of NVIDA. We will be taking some time to look at the technical details of the company to get a better understanding of where the stock may move next.

Arnaud Legox Moving Average

The Arnaud Legoux moving average in my opinion is the king of all the moving averages for two primary reasons it is highly responsive to movements in the tread and it is also a-lot does a better job at smoothing out a tread. This was a common drawback for investors using traditional moving averages. Along with analysis indicators investors also like to investigate some of the most shorted stocks on the market to understand market trends. Only made in 2009 the Arnaud Legoux moving average is new to the moving average family but insanely effective, as it is swifter eliminating the price lag that is often associated with moving averages. The fundamentals of the moving average remain the same however if the stock price in blue line moves above the Arnaud Legoux moving average in the red line it highlights a bullish trend is occurring indicating prices may rise. This is the case with NVIDIA as we can see the stock price has started to cross below the Arnaud Legoux moving average.

Vortex Indicator

The Vortex Indicator is a powerful indicator for spotting trend reversals and confirming current trends. Current trends can also be found in companies that capitalize on consumer trends in the market. The way it is used is very simple there is a VI positive line in (Blue) and a VI negative in (red) a bullish trend is confirmed if the blue line sits above the red line and a bearish trend exists if the red line sits above the blue line. A trend reversal occurs when the lines cross as we can see with NVIDIA’s graph above, the blue line has crossed above the red line indicating a continued trend moving upwards and a buy signal.

Awesome Oscillator

The Awesome Oscillator likes to live up to its name, sometimes it succeeds. It’s used to measure market momentum and calculates the difference between a 34 period and 5-period simple moving average. The Awesome Oscillator is generally used by analysts to confirm trends or to anticipate possible reversals when the bars cross above and below the 0 line indicating buy and sell signals respectively. As it is in this case, it is reaffirming a buy signal.


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