During this afternoon I was scanning some charts and I stumbled upon NVIDIA Corporation
(NASDAQ:NVDA), whose stock has shown remarkable strength over the last 7 months. The stock made a new 52 week high on Wednesday at $95.25 and closed slightly below on Friday in a choppy session for stocks.
NVDA has been hitting higher highs and higher lows amongst strong RSI price points. In fact, this particular indicator is showing multiple points of overbought periods. However, at this stage I prefer stay away for a better opportunity. The volume is also drying up, which means many people are concerned about these overbought levels. Wait for some sort of pullback.
This is a guest post by António Costa, acclaimed trader and the popular author of AC Investor Blog. All views and analysis belong to the author.