The Trader Harbor
  • Business
  • Politics
  • World News
  • Stocks
  • Business
  • Politics
  • World News
  • Stocks

The Trader Harbor

Stocks

Nvidia Breaks the 50-day SMA – Is this a Threat or an Opportunity?

by admin July 26, 2024
July 26, 2024
Nvidia Breaks the 50-day SMA – Is this a Threat or an Opportunity?

After a big run this year, Nvidia (NVDA) fell over 15% from its high and broke its 50-day SMA. On the face of it, a break below this “key” moving average seems like a short-term bearish signal. Such a view, however, would ignore the long term trend, which is the dominate force at work.

The first job is to define the long-term trend because this provides perspective and sets the trading bias. Nvidia is clearly in a long-term uptrend because it is well above the rising 200-day SMA and it recorded a new high a month ago. During a long-term uptrend, declines are viewed as corrections that provide opportunities. The break below the 50-day SMA, therefore, is more of an opportunity than a threat. Our reports and videos this week suggest the same for QQQ.

Corrections come in all shapes and sizes. We could get a short pullback, an extended pullback or a trading range. Nobody really knows. The decline into April broke the 50-day, but this correction was short-lived as the stock broke out in early May. The decline in September-October 2023 was longer because NVDA broke the 50-day SMA twice. These breaks did not lead to a bigger trend reversal.

Looking at the current break, the decline over the last four weeks looks like a normal correction after a big advance. NVDA was up 78% from mid April to mid June. A correction that retraces a portion of this advance is perfectly normal. The long-term trend is still up and I view this correction as an opportunity, not a threat.  

ChartTrader will cover the declines in leading tech and AI stocks on Tuesday, July 30th. We will put these declines into perspective, identify potential reversal zones and mark corrective patterns when possible. This report and video will include Nvidia (NVDA), Broadcom (AVGO), Dell Technologies (DELL), Pure Storage (PSTG) and more. Click here to learn more.

//////////////////////////////////////////////////

0
FacebookTwitterGoogle +Pinterest
previous post
Karine Jean-Pierre praises Biden’s decision to exit 2024 race as ‘selfless act’
next post
After the Tech Bloodbath: Ways to Strategize Your Portfolio

Related Posts

Five Must-Have Tools for Analyzing Stock Charts

November 26, 2024

Best Bullish and Bearish OptionsPlay Ideas for the...

December 3, 2024

Rates Look Set to Rise as TLT Resumes...

March 18, 2024

CrowdStrike: Did On-Balance Volume See the “Largest IT...

July 21, 2024

Volatility Ahead: What Investors Need to Know Right...

April 1, 2025

Unveiling Market Trends: What’s Triggering a Midweek Bearish...

March 28, 2025

What Would a Top in Semiconductors Mean for...

August 31, 2024

SMCI Stock Surges: How to Invest Wisely Now

June 27, 2025

BSX Stock Slump? Discover This Winning Option Strategy

April 3, 2025

Golf Geometry & Kinematics

July 13, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest

    • The Real Drivers of This Market: AI, Semis & Robotics

      July 21, 2025
    • What Musk’s fracture with Trump means for GOP’s future: ‘Beating heart of the Republican Party’

      July 21, 2025
    • Trump’s housing chief rips Powell for blowing millions on Fed facelift during housing crisis he perpetuates

      July 21, 2025
    • Trump celebrates 6 months back in office: US ‘totally revived’ after being ‘DEAD’ under Biden

      July 21, 2025
    • Biden admin spent hefty sum of US tax dollars to upgrade embassy swimming pools in Iraq, Russia

      July 21, 2025
    • Trump heads to Scotland, continues ironing out trade deals after notching six months back in office

      July 21, 2025

    Categories

    • Business (1,299)
    • Politics (4,040)
    • Stocks (1,535)
    • Uncategorized (45)
    • World News (1,292)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: TheTraderHarbor, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 thetraderharbor.com | All Rights Reserved