• Nvidia’s stock turns green, aims for bullish continuation
• Technical signals are positive; buyers eye 151.40 level
• Q3 earnings could come stronger, albeit at a slower annual pace

 

Nvidia’s stock has powered up and it’s heading toward its all-time high of 149.47 after a brief retreat to a two-week low of 136.87 earlier this week.

Technically, the latest pullback was merely a pause in the broad bullish trend in the four-hour chart. The price found strong support near the 23.6% Fibonacci retracement level of its August-November uptrend at 136.30, signaling renewed buying interest and setting the stage for further upside. The price also surged back above a broken support trendline and the 20-period simple moving average (SMA) at 145.00, reaffirming the strength of the bulls just before the top chipmaker releases its Q3 earnings on Wednesday (after the market close).

With the RSI and the stochastic oscillator reflecting strengthening buying activity, the bulls may fight for an uptrend resumption above the all-time high of 149.47. If they succeed, the next challenge could emerge near the resistance line, which connects the highs from August, at 151.40. Moving higher, the rally could take a breather near 158.40 and then around 164.45.

Should sellers press the stock back below the 50-period SMA, the 136.30 area may again provide protection. If it fails this time, the focus will fall on the constraining zone of 128.14-131.00, where the 38.2% Fibonacci mark is positioned. Slightly lower, traders may pay attention to the 200-period SMA at 125.00 before targeting the 50% Fibonacci of 121.55. The 61.8% Fibonacci number of 115 could send stronger bearish signals if violated.

All in all, Nvidia’s positive trend is still intact and has the potential to accelerate to greater heights, especially if the 151.40 barrier gives the green light.