Analysts Raise NVDA Forecasts, Stock Price Rises
According to FactSet, in July, seven reputable analysts have raised their target prices for NVDA stock. KeyBanc analyst John Vinh, for instance, increased his target from $130 to $180 (approximately 33% above the current price).
Following these target increases, Nvidia's stock has risen, closing above the psychological level of $130 yesterday for the first time since June 20. Consequently, NVDA's price has increased by more than 160% since the start of the year.
Will Nvidia's rally continue?
The NVDA chart data raises doubts about the stock's ability to confidently set new historical highs as it did in the first half of the year.
Notice the price behaviour when crossing the psychological level of $130, considering NVDA's trading volumes on the Nasdaq:
The rise to peak A occurred on below-average volumes;
The decline to low B occurred on significantly above-average volumes;
The rise to C (which may be exceeded) occurred on below-average volumes.
This relationship suggests a lack of buyers above the $130 level and sufficient sellers to push the price down.
According to NVDA's technical analysis today:
The price is in an upward channel (shown in blue);
The price is in the lower part of this channel, and the July rebound from the lower boundary is not very confident;
Peak C is approximately at the 50% Fibonacci retracement level of the AB downward move (a potential proportion of the upward correction within the prevailing trend).
All these factors provide enough arguments to be prepared for a scenario where NVDA's price breaks below the lower boundary of the current blue channel on increased volumes.
Read more: https://fxopen.com/blog/en/oa-analysts-raise-nvda-forecasts-stock-price-rises/
Text source: Forex Trading Blog
