JJ8
6 hours ago
How To Invest In 2025: As Nvidia Blinks, Draw
Lines, Not Conclusions
MATTHEW GALGANI03:08 PM ET 12/18/2024
Riding the artificial intelligence zeitgeist, Nvidia (NVDA), Meta Platforms (META), Alphabet (GOOGL), Amazon.com (AMZN) and the other Magnificent Seven stocks drove impressive gains across 2023 and 2024. But how should investors handle Nvidia stock and other top growth names when it comes to how to invest in 2025?
Rather than guess with often-faulty predictions, investors can improve their odds of success — and keep those troublesome emotions of fear and greed at bay — by learning how to read stock charts.
Start by monitoring the three telltale lines for how to invest in Nvidia, Meta, Google, Apple (AAPL), Tesla (TSLA) and each stock you own. And look for this additional clue that signals a change for the better — or worse.
Nvidia, after launching a breakout in January of 2023 following a dismal 2022, the AI juggernaut did not breach its 10-week moving average until hitting a spat of volatility in August of 2023. But Nvidia refused to "live below" that benchmark. It soon regained support, sparking another big run from January to June.
Then a new storyline emerged as fear, greed and uncertainty came into play.
With a focus on the eight rules of selling, investors began to weigh FOMO — the fear of missing out — with FOMU — the fear of messing up. For those who missed the huge gain in Nvidia stock was it time to get in before they missed this AI gravy train? Or was it time to scale out of the stock to incrementally safeguard hard-earned gains?
As 2024 comes to a close, Nvidia has slipped below its 50-day and 10-week lines. In determining how to invest in stocks, another factor to consider is that its latest breakout was from a late-stage base. Because they form after a major climb, such patterns entail more risk and often coincide with increased volatility. That fits Nvidia to a tee.
While the stock is trying to rally, it remains stuck below its 50-day line.
That, of course, does not mean the stock cannot rebound and keep climbing. But as Nvidia loses support at key moving averages, keep that warning sign and the principles of risk management in mind.
Stock Charts: Will Nvidia Stock Cross The Line?
Investors should also note the relationship of the 50-day and 10-week moving averages with their 200-day and 40-week cousins. As a rule, you want to see the shorter-term lines above the longer-term lines.
It's a sign of technical weakness when, for example, the 50-day moving average moves below the 200-day line. Conversely, it's a sign of rebounding strength when the 50-day line crosses back above the 200-day benchmark.
Given this year's strong bull market, the 10-week lines for Nvidia, Apple and all the Mag 7 stocks stand above their 40-week moving averages — exactly what you want to see. Also note that these key moving averages continue in an upward trajectory, another positive sign.
Nvidia, Microsoft and Apple offer recent illustrations of how this relationship between shorter- and longer-term moving averages work.
Marking a positive change in June, Apple's 10-week line climbed back above its 40-week benchmark. Plus, Apple's 21-day line just crossed back above its 50-day line earlier this month. The iPhone maker rose steadily from there.
As December winds down, Microsoft's 50-day line has edged back above its longer-term 200-day line as the shares of the software giant rise. Like with Apple, the software and AI giant's 21-day has now moved back above the 50-day line.
Nvidia stock, on the other hand, has a looming threat. While its 50-day line remains solidly above its 200-day line, the 21-day exponential moving average has begun to trend down and starting to undercut the 50-day benchmark. Such a move does not spell doom. But it does hint at rising weakness rather than gathering strength.
DiscoverGold
18 hours ago
Nvidia MONSTER Insider Trading Alert: Tench Coxe, the 3rd largest Nvidia shareholder who acquired these shares in 1997, just dumped 1 million $NVDA shares for a total value of $131.2 million
By: Barchart | December 18, 2024
• Nvidia MONSTER Insider Trading Alert
Tench Coxe, the 3rd largest Nvidia shareholder who acquired these shares in 1997, just dumped 1 million $NVDA shares for a total value of $131.2 million.
Read Full Story »»»
DiscoverGold
4retire
2 days ago
Have not heard or read anything on that. What I have read is where Qubits are difficult to control in order to give error free answers. Geeze, atoms, lasers, strings, cryogenics needed, photonics, seems like they trying to capture a fart with a frying pan. There hasn’t been any standardization on even what a successful, viable qubit is……yet everyone is going wild on the premise of quantum computing.
Jensen has some of the very best engineers working for him. If a multiple, reliable amount of qubits could be put on a wafer, I would think Jensen would be all over it. In my readings I am seeing 10 different companies using 10 different approaches to solving this puzzle. I think it’ll comedown to the old Beta vs VHS scenario.