NVDA Swing Trader: 25.44% Gain With Long-Short Strategy
Swing Trader's Success: Long-Short Equity Strategy (TA&FA) Generates 25.44% for NVDA
In the vibrant field of financial market trading, success stories often come from innovative strategies and diligent application of analytical tools. One such story that stands out is the impressive 25.44% return generated by a swing trader employing a Long-Short Equity Strategy using both technical analysis (TA) and fundamental analysis (FA) for Nvidia Corporation (NVDA).
One of the significant elements in the trader's arsenal of techniques was the Moving Average Convergence Divergence (MACD), a crucial technical indicator. MACD provides traders with trends of momentum by showing the relationship between two moving averages of a security's price. It offers a clear and quick picture of short-term trends which are paramount to swing trading.
On July 14, 2023, a notable event occurred - NVDA's MACD Histogram crossed above its signal line, turning positive. The significance of this event can't be understated. When the MACD line crosses above the signal line, it's generally considered a bullish signal - a cue for traders to consider buying.
What made this situation particularly intriguing for the swing trader was the historical trend that came to light. Looking at previous instances where NVDA's MACD turned positive, the stock price continued to rise in 43 of 49 cases over the following month. This translates to an astounding 88% chance of a continued upward trend.
The combination of technical and fundamental analysis in the Long-Short Equity Strategy proves fruitful, as seen in this case. Technical analysis provides traders with the necessary signals to enter and exit positions, while fundamental analysis helps assess the inherent value of the stock. Both these methods, when combined effectively, can lead to significant gains.
As demonstrated by the swing trader's successful engagement with NVDA, a balanced application of TA and FA can yield robust returns. By strategically capitalizing on MACD signals and other technical indicators while maintaining a keen eye on the underlying financial health of the company, the swing trader was able to generate a significant return of 25.44% for NVDA.
This successful use of the Long-Short Equity Strategy using TA & FA for NVDA is a testament to the power of informed trading. It's an inspiring example of how blending different approaches and maintaining agility can significantly boost one's investment portfolio.
Aroon Indicator for NVDA shows an upward move is likely
NVDA's Aroon Indicator triggered a bullish signal on October 28, 2024. Tickeron's A.I.dvisor detected that the AroonUp green line is above 70 while the AroonDown red line is below 30. When the up indicator moves above 70 and the down indicator remains below 30, it is a sign that the stock could be setting up for a bullish move. Traders may want to buy the stock or look to buy calls options. A.I.dvisor looked at 371 similar instances where the Aroon Indicator showed a similar pattern. In of the 371 cases, the stock moved higher in the days that followed. This puts the odds of a move higher at .
Technical Analysis (Indicators)
Bullish Trend Analysis
NVDA moved above its 50-day moving average on September 23, 2024 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for NVDA crossed bullishly above the 50-day moving average on September 24, 2024. This indicates that the trend has shifted higher and could be considered a buy signal. In of 15 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. 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 369 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
The 10-day RSI Indicator for NVDA moved out of overbought territory on October 23, 2024. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 46 similar instances where the indicator moved out of overbought territory. In of the 46 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 15 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
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 October 08, 2024. 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 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 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 67, 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 PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average 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 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 (51.282) is very high in comparison to the industry average of (7.487). P/E Ratio (56.934) is within average values for comparable stocks, (58.779). Projected Growth (PEG Ratio) (1.306) is also within normal values, averaging (2.825). NVDA has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.020). P/S Ratio (31.447) is also within normal values, averaging (43.322).
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a manufacturer of computer graphics processors, chipsets, and related multimedia software
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