NVDA Numbers
One of the best-performing stocks of 2023 has been NVIDA.
And I’m relieved to say it’s a stock we bought into in September 2022 - you can’t be in everything but it’s always disappointing not to have a least one star performer.
As toy can see from the chart, our entry was a little premature - and prior to the low a few weeks later.
But we have taken positions on NVDA many times in the past and it can be a difficult stock to trade based on technical set-ups - as will become apparent later in this post!
By October 2022 we began to see signals that a bull market may commence (Dynamic Traders can watch the MaR video on our blog during that period for the reasoning).
We had already started to position ourselves accordingly - by continuing to remove stocks no longer suited to our portfolio (going into a new bull market offers new opportunities and we didn’t want to get weighed down with laggards) and tentatively adding new or compound positions.
NVDA was a stock we certainly wanted in our book (hence the early buy).
Original entry approx: $130
Recent add-on approx: $455
Current price: $481.11
Since our original entry, price has moved up about 270%.
In May 2023 there were some signs that the stock was overbought so, while rebalancing our book, we took some profit off the trade.
While price did retrace a little, it did not do so enough for us to add back at a lower level.
However, after every big move we should expect price to pullback or consolidate - and that is exactly what we are seeing now.
Unfortunately, our compound was a little early - at the start of the current consolidation period - so we overpaid slightly (and above our partial profit-taking level).
However, all positions are now in profit.
With hindsight, there was a good technical set-up to add on the indecision candle on 31 October 2023 - which would’ve been better than our compound.
Like I said at the start of the post, NVDA can be tricky!
While we believe this stock is over-valued (so too expensive to consider adding further at these levels), we do feel there is more upside on offer.
As always, the details of this and all of our trades are shared within our trading community at the time and on the weekly videos at the weekend, so everyone can make their own assessment and decisions.
Anne Chapman
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