• Nvidia extends rally and hits new all-time high

• Oscillators point to extremely positive momentum

• Investors may continue exploring uncharted areas

Nvidia’s stock surged on Friday, extending its prevailing rally, and hitting a new record high of around 594. The stock has been climbing north since January 8, when it exited the sideways range between 405 and 505, within which it was trading since mid-May. This has turned the technical outlook back to overly positive.

The daily oscillators corroborate that view. The MACD is well above both its zero and trigger lines, still pointing up, while the RSI has been stuck above the 70 zone for more than 10 days now, and points north as well. This is likely pointing to extremely positive momentum rather than overbought conditions.

If investors decide to allow the stock to correct lower, they may do so after they challenge the round figure of 600. Nonetheless, any setback is likely to remain limited and short-lived, with a renewed recovery perhaps aiming for a new record. With no prior highs or inside swing lows to mark potential resistance zones, the next barriers could be the 650 level or the 665 zone, near the 261.8% Fibonacci extension level of the aforementioned range’s width.

On the downside, a retreat below 505 would turn the outlook back to neutral, while the move suggesting a bearish reversal may be a decisive dip below the lower bound of the range at 405. The next levels to consider as supports after that may be at 375 and 345, marked by the low of May 8 and the inside swing high of November 22, 2021, respectively.