Nvidia (NVDA) stock lately has been in a league of its own.
Before the market volatility picked up, Nvidia and Tesla (TSLA) were the two market leaders for U.S. equities.
While other names were doing well, too — as the S&P 500 and Nasdaq gained 9.25% and 17.2% at their year-to-date highs, respectively — Nvidia and Tesla were the workhorses of the rally.
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Year to date, the graphics-chip stalwart's stock is up 69%, while the electric-vehicle leader is up 47%.
While Tesla stock has eased lately, Nvidia stock just hit multiquarter highs. (It’s worth mentioning that Advanced Micro Devices (AMD) also continues to trade quite well, too, as semiconductors continue to power higher. )
In general, tech stocks have been strong, particularly amid this regional banking scare.
The Nasdaq's continued strength has been a stabilizing factor for the U.S. stock market over the past week or so.
Trading Nvidia Stock
Chart courtesy of TrendSpider.com
Nvidia stock is working on its fourth straight daily rally, an impressive feat when you consider the events of this week. If it finishes higher this week, it will be the stock’s 10th weekly gain in the past 11 weeks. That’s particularly impressive given the macro backdrop we’ve faced.
During the rally in early February, Nvidia stock found resistance at the 50% retracement from the 2022 low back up to the all-time high from 2021.
The stock gapped above that mark after the earnings report; since then, this prior resistance level has been support.
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Now that the stock is pushing higher again, it's clearing resistance in the low-$240s. That opens the door to $250 — roughly where it’s trading now — followed by $255 to $258.
That zone is the 61.8% retracement of the aforementioned range, as well as the 161.8% extension of the most recent pullback.
On the downside, the bulls will soon likely start to look for support from the rising 10-day moving average. But proven support has been between $225 and $228, as well as the 21-day moving average.
If Nvidia stock breaks below and closes below $224, it opens the door down to the low $200s and the rising 50-day moving average.
For now, though, Nvidia remains one of the best stocks to own in the current market based on the charts.
