Maximize Returns with Swing Trading: 15.94% Gain on NVDA via TA&FA Strategy
A Swing Trader's Success: Market Neutral Strategy Generates 15.94% for NVDA
Swing traders are known for capitalizing on short-term price fluctuations in the stock market. One such proficient trader has demonstrated the potential of their Market Neutral Strategy (Technical Analysis & Fundamental Analysis), creating a significant profit of 15.94% for NVDA.
NVDA, or Nvidia Corporation, one of the popular stocks in today's market, was the stock of choice for this swing trader's strategy. Nvidia is a renowned player in the tech sector, known primarily for its state-of-the-art graphic processing units (GPUs). The company's significant growth and consistent earnings have made it a favorite pick among investors.
The swing trader employed a Market Neutral Strategy, leveraging both Technical Analysis (TA) and Fundamental Analysis (FA). The essence of this approach is to balance the portfolio by taking long and short positions in stocks, neutralizing the effect of market movements, and focusing only on the relative performance of the stocks.
Technical Analysis is a method that predicts future price movements by analyzing historical market data, primarily price and volume. In contrast, Fundamental Analysis evaluates a security's intrinsic value by examining related economic, financial, and other qualitative and quantitative factors.
In the case of NVDA, the Aroon Indicator was a critical part of the Technical Analysis. This indicator helps determine if a stock is trending or not and the strength of that trend. Interestingly, the Aroon Indicator for NVDA showed that an upward move was likely, suggesting a potential buying opportunity.
With the insights provided by the Technical and Fundamental Analysis, the swing trader executed the Market Neutral Strategy. The result was a noteworthy return of 15.94% on NVDA, validating the effectiveness of this approach. It is yet another testimony to the potential of systematic and analytical trading strategies in today's volatile and often unpredictable markets.
It's important to remember that each trader's tolerance, investment goals, and trading skills may result in different outcomes. Nevertheless, the success of this swing trader in the choppy market environment underlines the power of solid, data-driven strategies in generating returns, even amidst market volatility.
While this particular instance showcases a triumph, it is essential to note that swing trading, like any trading strategy, requires in-depth knowledge, experience, and a strong understanding of market trends. For those willing to learn and adapt, the rewards, as demonstrated by this NVDA case study, can be substantial.
NVDA's RSI Indicator ascending out of oversold territory
The RSI Indicator for NVDA moved out of oversold territory on August 14, 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 21 similar instances when the indicator left oversold territory. In of the 21 cases the stock moved higher. This puts the odds of a move higher at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 7 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
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 78 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 .
NVDA broke above its upper Bollinger Band on August 21, 2023. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for NVDA entered a downward trend on August 21, 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 Price Growth Rating for this company is (best 1 - 100 worst), indicating outstanding 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 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 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 (39.062) is slightly higher than the industry average of (8.009). P/E Ratio (105.263) is within average values for comparable stocks, (54.114). Projected Growth (PEG Ratio) (1.379) is also within normal values, averaging (2.371). NVDA has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.022). P/S Ratio (33.223) is also within normal values, averaging (72.719).
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% | -2.94% | ||
| AMD - NVDA | 82% Closely correlated | -1.25% | ||
| AOSL - NVDA | 78% Closely correlated | -2.42% | ||
| ASML - NVDA | 77% Closely correlated | -0.66% | ||
| MPWR - NVDA | 75% Closely correlated | -1.07% | ||
| MRVL - NVDA | 73% Closely correlated | -2.13% | ||
More | ||||