Nvidia Corp. (NASDAQ: NVDA) shares rose on Tuesday Dec 13 with lower trade volume than normal after a number of analysts weighed in on the investing value of the stock and reiterated thier respective ratings.
Meanwhile, the Dow DJIA, +0.47% climbed 106 points, or 0.6%, to 19,905. If the Dow finishes higher, it will notch its seventh straight gain.
The S&P 500 index SPX, +0.56% gained 10.45 points, or 0.5%, to 2,267 and the tech-heavy Nasdaq Composite Index COMP, +1.02% added 48 points, or 0.9%, to 5,461.
Both the S&P 500 index SPX, +0.56% and Nasdaq Composite COMP, +1.02% ended lower on Monday, with investors appearing reluctant to push shares higher ahead of the Fed meeting
Pacific Crest analysts reiterated its Buy rating on Nvidia Corp. (NASDAQ: NVDA) in a note to investors, making it one of the more closely watched stocks on Wall Street. With a rating of Buy on the shares, the company has a 52-week high of $96.62. The one-year price target of $88.48 is a decrease compared to the opening price of $90.09, causing a fair amount of other analysts to comment on the company in recent days. Share prices sometimes get a jump to the upside when analysts reiterate coverage.
Nvidia Corp. (NASDAQ: NVDA) shares last traded at $91.23, which is a spike of $1.64 or 1.83% compared to the previous closing price. Opening at $90.09, they ranged from $90.05 and $91.59 throughout the day.
Nvidia Corp. (NASDAQ: NVDA) now has a market cap of 49.17B.
Nvidia Corp. (NASDAQ: NVDA) Average Daily Trading Volume
1,912,350 shares traded hands yesterday, lower than normal, out of a total float 514,329,000. Look for trading volume to pick up in the coming days as investors often use increases in trading volume to determine heavy volume growth or dissemination by institutional investors.
While higher trading for short periods will not mean much, conversely, a trend of heavy trading volume on the buy side over a series of days or weeks sends a positive cue to market traders that institutions may be moving in, so institutional sponsorship is crucial.
Institutional sponsorship is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These professional investors have teams of analysts researching thousands of stocks, so it is good confirmation to see them buying a stock you’re researching.
Nvidia Corp. (NASDAQ: NVDA) Moving Averages
A moving average can also act as support or resistance. In an uptrend a 50-day, 100-day or 200-day moving average may act as a support level, as shown in the figure below.
This is because the average acts like a floor (support), so the price bounces up off of it.
In a downtrend a moving average may act as resistance; like a ceiling, the price hits it and then starts to drop again.
By spotting trends, moving averages allow traders to make those trends work in their favor and increase the number of successful trades.
Trades for Nvidia Corp. (NASDAQ: NVDA) have ranged from $24.75 – 96.62, and the stock now has a 50-day MA of $82.90 and 200-day MA of $63.82. Today’s last price is 5.58%% under the 52 week high of $96.62.
Indeed, earnings growth is among the most crucial things to look at in regards to stock investing and, accordingly, investors watch for companies that have increased their earnings by at least 25% for the past 3 years.
DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of the website. Readers should not consider statements made by the author as formal recommendations and should consult their financial adviser before making any investment decisions. To read our full disclosure, please see our terms and conditions page.