10 Oct Nvidia Gets Stuffed, Again!
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Nvidia’s Stock Gets Stuffed
Nvidia’s stock ($NVDA) gapped higher at the open of trading this morning following the announcement of its newest chip designed for autonomous driving. Shares traded as higher as $192 shortly after the open, where the stock was greeted with a wall of sellers, the second time, shares of Nvidia got stuffed around this $192 level.
The chart below shows how Nvidia has had two trips to the $192 level only to be met with a wall of resistance.
What is worse for the stock is that the gap at the open came on much lower volume than previous times. The chart below shows the spike in volume was nearly as high as the spike that occurred back in the middle of September.
It is probably not a good sign that shares have not been able to rally past this $192, the critical level for the stock and needs to watched.
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Tesla jumped higher today, recovering all the losses from the previous day. Now that the Algo’s have successfully filled all the short-term gaps, it will be interesting to see which direction the wind takes the shares tomorrow.
The Technology ETF ($XLK) showed a little weakness, which brought it back into its trading channel, which is good. We will need to continue to watch this area of trading activity.
Biotech shares could be coming closer to their next move higher. The Biotech ETF ($IBB) is moving closer to its current uptrend that dates back to mid-August. Shares should find meaningful support at the trend line and cause the group to rally.
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Michael Kramer and the clients of Mott Capital own shares of Tesla
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Tags: Tesla, Technology, Biotech, Nvidia