NVIDIA Closing in to Resistance

Published on Friday, 10 February 2012 23:00 Written by TradersHuddle Wire

New York, February 10th (TradersHuddle.com) - Shares of NVIDIA Corporation (NASDAQ:NVDA) are trading very close to calculated resistance at $16.62 with the current price action closing at just $15.90 placing the stock near levels that make it difficult to buy.

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 current stock range is defined by current calculated support defined at $13.50 and by the resistance level at $16.62, the stock is clearly over-extended from support, making it difficult to establishing new long positions at this level.

Traders don't have a clear entry point for NVIDIA, as the stock is well above support, however, as the stock pulls back towards $13.50 it will definitely provide a reference point to establish a trade. On the other hand if the stock decides to break above resistance level at $16.62 then traders will get an opportunity to enter NVIDIA stock by establishing a position as the stock moves to a higher range.