AI Trading Robot Generates 13.5% GAIN for NVDA Last Month Despite Bearish Indicators
NVDA(Nvidia Corporation), a global leader in the technology sector, recently experienced a significant gain, a 13.5% return within the last month, courtesy of the application of an Artificial Intelligence AI Trading Robot. This scenario offers a fascinating instance of how AI applications are revolutionizing trading activities. But, as we dive into the analysis, it's important to note that NVDA's Moving Average Convergence Divergence Histogram (MACD) turned negative on June 23, 2023, indicating a potential downturn.
NVDA (Nvidia Corporation), a global leader in the technology sector, recently experienced a significant gain, a 13.5% return within the last month, courtesy of the application of an Artificial Intelligence (AI) trading robot. This scenario offers a fascinating instance of how AI applications are revolutionizing trading activities. But, as we dive into the analysis, it's important to note that NVDA's Moving Average Convergence Divergence Histogram (MACD) turned negative on June 23, 2023, indicating a potential downturn.
The MACD is a momentum oscillator used by traders to assess short-term price trends. When the MACD turns negative, it suggests that the short-term moving average of a stock's price has dipped below its long-term moving average, signaling bearishness. In layman's terms, this means that the price of the stock could decline.
From the dataset provided by Tickeron's A.I.dvisor, we learn that there were 49 instances when the MACD turned negative. In 37 of these cases, the stock moved lower in the subsequent days. This historical trend puts the odds of a downward move at 76%, which is considerably high.
While the potential for a decrease in the NVDA's price appears probable, it's important to remember that trading indicators are not absolute. They provide a statistical probability, not a certainty. This is where the AI trading robot comes into the equation. The AI trading robot, in this case, has managed to generate a 13.5% gain for NVDA last month, which suggests it may have taken into account various other factors beyond the MACD.
Artificial Intelligence and machine learning algorithms take into consideration a vast array of factors when analyzing stocks. They can digest enormous amounts of data from different sources, applying complex strategies that might not be possible for individual investors to carry out manually. These algorithms can learn from past data, identifying trends and patterns that humans might miss.
In the case of NVDA, despite the bearish signal from the MACD, the AI trading robot generated a significant gain. This could be attributed to the AI's ability to integrate and analyze a multitude of other variables like the company's financial health, market sentiment, economic indicators, sector trends, and even global political events.
Given the negative MACD signal, traders and investors might be inclined to exercise caution with NVDA in the coming days. However, this does not mean that they should dismiss the recent 13.5% gain achieved by the AI trading robot. It might be beneficial for investors to look beyond traditional technical indicators and consider the broader picture that AI algorithms can provide.
The integration of AI into the trading sector is redefining strategies and enhancing performance. While technical indicators like MACD offer useful insights, they do not present the whole story. AI trading robots, with their ability to digest and learn from vast amounts of data, can provide a more holistic view of investment scenarios. The recent gain for NVDA is a testament to this rapidly evolving dynamic.
NVDA's RSI Oscillator ascends from oversold territory
The RSI Indicator for NVDA moved out of oversold territory on September 25, 2023. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 20 similar instances when the indicator left oversold territory. In of the 20 cases the stock moved higher. This puts the odds of a move higher at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 46 cases where NVDA's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where NVDA advanced for three days, in of 347 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on September 07, 2023. You may want to consider selling the stock, shorting the stock, or exploring put options on NVDA as a result. In of 77 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for NVDA turned negative on September 07, 2023. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 48 similar instances when the indicator turned negative. In of the 48 cases the stock turned lower in the days that followed. This puts the odds of success at .
NVDA moved below its 50-day moving average on September 15, 2023 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for NVDA crossed bearishly below the 50-day moving average on September 19, 2023. This indicates that the trend has shifted lower and could be considered a sell signal. In of 14 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where NVDA declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for NVDA entered a downward trend on September 29, 2023. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 62, placing this stock better than average.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. NVDA’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: NVDA's P/B Ratio (38.760) is slightly higher than the industry average of (7.977). P/E Ratio (104.167) is within average values for comparable stocks, (53.975). Projected Growth (PEG Ratio) (1.365) is also within normal values, averaging (2.349). NVDA has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.022). P/S Ratio (32.895) is also within normal values, averaging (72.573).
Notable companies
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
General Information
a manufacturer of computer graphics processors, chipsets, and related multimedia software
Industry Semiconductors
NVDA and
Correlation & Price change
A.I.dvisor indicates that over the last year, NVDA has been closely correlated with AMD. These tickers have moved in lockstep 82% of the time. This A.I.-generated data suggests there is a high statistical probability that if NVDA jumps, then AMD could also see price increases.
| Ticker / NAME | Correlation To NVDA | 1D Price Change % | ||
|---|---|---|---|---|
| NVDA | 100% | +0.92% | ||
| AMD - NVDA | 82% Closely correlated | +0.07% | ||
| AOSL - NVDA | 78% Closely correlated | +0.54% | ||
| ASML - NVDA | 77% Closely correlated | +1.38% | ||
| MPWR - NVDA | 75% Closely correlated | +2.23% | ||
| MRVL - NVDA | 73% Closely correlated | +0.20% | ||
More | ||||