The major manufacturer of game cards Nvidia has offered great returns for trend traders in 2016. The price of this stock opened at 32.50 at the beginning of the year and has been as high as 120.00, which is almost four times the year opening price.
The below chart shows the bullish trend on the monthly time frame for Nvidia.
The monthly chart provides us with a birds eye view of the longterm direction of the trend. As you can see there are not many pullbacks during 2016. We can see a couple months whereby buyers and sellers were indecisive but this was followed by a positive bullish candle. It is important to note the volumes increased substantially in 2016 compared to the previous years which shows this stock is becoming more popular with traders.
The weekly chart provides us with a clear view on price action setups. You will notice there are more areas of consolidation which form flag patterns. The flag continuation patterns were key to our trend trading circle as we used these areas to add to our position and compound.
The daily chart further confirms the bullish trend as price continued to create higher highs and trade above the moving average. Price shortly pulled back to round number 103.00 on 29th December 2016 but bounced back up during the same session.
Always remember the most strongest of trends need to breathe once in a while, do not mistake a temporary pull back for a trend reversal.
Nvidia will remain on our watchlist in 2017 as we favour a further move to the upside.
Happy Trading Guys :-)