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Chart of the Day: Nvidia and the Midcap Breakout

Megacap growth stocks like Nvidia have outperformed for years. But traders looking for the trend to change may see more evidence of a shift.

Today’s idea considers three charts. The first shows how NVDA rallied 93 percent this year above its previous record high. It also highlights the big price swing on Friday as the chip giant made a new record high before reversing lower. In the process it engulfed prices over the two previous sessions. That’s a potential reversal pattern …

For more, please click here to view the related idea and chart analysis on TradingView.

Nvidia (NVDA), daily chart, with selected patterns and indicators, courtesy of TradingView.
Tags: NVDA

About the author

David Russell is Global Head of Market Strategy at TradeStation. Drawing on nearly two decades of experience as a financial journalist and analyst, his background includes equities, emerging markets, fixed-income and derivatives. He previously worked at Bloomberg News, CNBC and E*TRADE Financial. Russell systematically reviews countless global financial headlines and indicators in search of broad tradable trends that present opportunities repeatedly over time. Customers can expect him to keep them apprised of sector leadership, relative strength and the big stories – especially those overlooked by other commentators. He’s also a big fan of generating leverage with options to limit capital at risk.