NVIDIA Bullish Signs
Published on Friday, 01 February 2013 21:09 Written by TradersHuddle Wire
New York, February 1st (TradersHuddle.com) - Shares of NVIDIA Corporation (NASDAQ:NVDA) ended the trading session higher by $0.11 or 0.91% from its previous close. NVIDIA's price action formed what is considered to be a bullish engulfing candle that could very well signal a continuation of trend or reversal of the ongoing weakness.
NVIDIA Corporation (NASDAQ:NVDA) designs, develops, and markets three dimensional graphics processors and related software. Its products provide interactive 3D graphics to the mainstream personal computer market.
NVIDIA's recent stock range was formed by a trough where calculated support was defined at $11.91 and by a peak that established the resistance level at $13.19. This range could be used by traders managing their positions.
Traders wanting to establish a position in NVIDIA or traders that are already holding the stock can use the bullish engulfing pattern to their advantage. The pattern provides a defined risk, as it shows where the bears were able to push the stock down, before the bulls step in with a bid.
The bullish engulfing pattern is a leading indicator that provides an alert to the bulls that the trend will continue or that there is an immediate reversal to the short-term weakness seen on the stock. Below an Engulfing Bullish Candle Illustration:
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