Today’s chart is of Nvidia (NVDA), a visual computing company, which develops graphics chips for use in personal computers (PC), mobile devices, and supercomputers.
Ticker: Nvidia (NVDA)
What I Am Looking At:
- Outperforming the semiconductor industry as well as the broader market, up nearly 22 percent year-to-date
- Short-term performance is relatively strong as NVDA is up since the S&P 500 Index topped on August 2nd
- Semiconductor Index has been also outperforming the S&P 500 Index since the Aug. 2nd top
- Shares appear to be moving up from a resistance-turned-support zone around $14.75
- Recovered nicely from the big dip on August 8-12
- Despite the positive performance, skepticism among analysts remains as 19 out of 25 rate the shares a “hold” or worse
- Short interest remains near high levels, nearly 7 percent of the float is sold short
- Short interest is falling after peaking in June, an indication that positions are being covered
- Peak put open interest for the September/ October series resides at the 14-strike, which could be supportive
- One caveat is huge peak call open interest for the September series at the 15- and 16-strike may create roadblocks for further advancement
Conclusion: Longer-term, looking for shares to move to round-number $20, which is half the all-time high.