Bloomberg reported yesterday that Nvidia could be flashing signs of overheating. The reason that Bloomberg considers Nvidia to be overbought was based on the fact that the shares have climbed over 230% since the start of the year, and they are currently in overbought territory on the RSI index. So does this mean Nvidia is due for a pullback?
Nvidia shares of really benefited from AI chip hopes. The company is due to follow earnings on November 21, so you should definitely expect some volatility shortly for the stock however, are any dips in the video worth buying?
The seasonal pattern for Nvidia is certainly very strong over the last 15 years between the 15th of November and the 20th of February Nvidia shares have gained on average 13.73%. So buying Nvidia from key support levels could make sense once earnings are out of the way.
Dip buying ahead?
The major trade risk here will be if Nvidia’s earnings show a major concern and/or the attitude to AI stocks changes rapidly.
Remember don’t just trade it, Seasonax it!