• Nvidia stock surges nearly 6% on Monday.
  • Friday’s losses are nearly totally recovered.
  • NVDA is set to end the year at all-time highs.

Nvidia surged higher on Monday as risk-on sentiment bought up most stocks, but particular attention was paid to clear 2021 winners. This was not a case of Cyber Monday bargain hunting, rather investors overlooked stocks that have been struggling and instead bought up some already high-flying names. Nvidia is already nearly up 140% year to date, but that did not deter investors piling into the name on Monday. Laggard stocks were punished, Peloton (PTON) for example slumped over 4% on Monday. This was a time for risk to be taken but only into strong stocks. Momentum creates more momentum.

Nvidia (NVDA) stock news

Nvidia announced on Monday that it will participate at Deutsche Bank’s Auto Tech Conference on Thursday, December 9, while the company will also attend JPMorgan’s Tech/Auto Forum on Wednesday, January 5. Nvidia is due to speak today at the Credit Suisse Technology, Media & Telecom Conference and tomorrow at the Wells Fargo TMT Summit. Some headlines of note may be forthcoming from that suite of conferences. Also to note is that Nvidia goes ex-dividend tomorrow, December 1. The Nvidia dividend of $0.04 will be paid on December 23.

Nvidia (NVDA) stock forecast

The drive to end the year above $350 is still on track after Monday’s powerful recovery. We should also take some credit for identifying the $310 support last week. This is where Nvidia bottomed out on Thursday and Friday. It is the top of the flag formation from the daily chart further down. From the 30-minute chart, we can see the concentration of volume from $328 to $310. Breaking out of this range then sees the next high volume zone around the $302 to $294 range.

The $310 level from the daily chart is holding the current potential for a move to $350. Once below, all bets are off, and the stock becomes neutral in the short term. The bearish divergence in the Relative Strength Index (RSI) is a bit concerning as we would like to see this broken to confirm any move to $350.

NVDA 1-day chart

This article was originally published by Fxstreet.com.Read the original article here.


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