NVIDIA (NASDAQ: NVDA), a leading force in artificial intelligence, appeared to undergo a significant technical surge as highlighted by analysts at Fairlead Strategies on the preceding day.
On Monday, NVDA shares soared by 6.4%, driven by several factors including reduced treasury yields, optimistic remarks from analysts, news regarding a more affordable AI chip designed for China, and the commencement of CES in Las Vegas. This surge continues a remarkable trajectory, with the stock having surged by over 250% in the past year.
Commenting on this notable movement, analysts noted, “The formidable NVDA convincingly surpassed a critical resistance level near $504, signaling a potential breakout, albeit unconfirmed. This breakout marks the resolution of a four-month trading range, pointing to a bullish trend in the intermediate term. Moreover, the weekly MACD (Moving Average Convergence Divergence) indicator now signals a ‘buy.'”
Expanding on this development, analysts projected that this breakout could potentially propel the stock’s long-term upward trend, with an initial estimated target of around $602, signifying a prospective 15% increase from Monday’s closing price, which stood at $522.53.