Nvidia (NVDA) Share Price Rises Over 6%
The NVDA stock chart shows that following yesterdays trading session, the share price climbed over 6%, outperforming the Nasdaq 100 index (US Tech 100 mini on FXOpen), which gained just over 1%.
Despite this recovery from a six-month low, NVDA shares remain down 15% year-to-date.
Why Did Nvidia (NVDA) Shares Rise Yesterday?
Positive sentiment swept through the stock market after U.S. inflation data came in lower than expected. The Consumer Price Index (CPI) for the month stood at 0.2%, below analyst forecasts of 0.3% and the previous reading of 0.4%.
Investors may now be looking for opportunities following the March sell-off, triggered by Trumps tariff policies and recession fearsand NVDA shares appear attractive in this context.
Barrons suggests that NVDA stock may currently be undervalued, while MarketWatch cites BofA analyst Vivek Arya, who advises investors to focus on Nvidias gross profit margins as a key driver of significant share price growth.
Technical Analysis of NVDA Stock
Earlier this month, we identified a descending channel (marked in red) and suggested that its lower boundary could act as supportwhich was confirmed (highlighted by the circle).
Bullish perspective:
- The stock opened with a bullish gap and gained throughout the session, failing to hold below the psychological $110 level.
Bearish perspective:
- The price remains within the descending channel, with the median line potentially acting as resistance.
- The $117.50 level, previously a support, has turned into resistance (as indicated by the arrows) and may pose a challenge to further recovery.
NVDA Share Price Forecast
According to TipRanks:
- 39 out of 42 analysts recommend buying NVDA stock.
- The average 12-month price target for NVDA shares is $177.
Read more: https://fxopen.com/blog/en/oa-nvidia-nvda-share-price-rises-over-6/
Text source: Forex Trading Blog
