I am a firm believer in buying quality companies when they go on sale. While emotions intensify during bear markets and stock market adjustments, this is often the case the best time for long-term investors to start shopping.
If you are an experienced trader or market speculator, then it may be best to trade the trend. Currently, this trend is lower. If traders do not like shorts, they can wait for better trading conditions, waiting for a new uptrend to form.
Because trying to time in the market is not a good ideaInvestors may consider a dollar-average price approach or another way to buy good companies at good prices.
They both have both reported solid profit results and both companies are expected to continue to increase profits and revenues. This applies both this year and in the coming years.
Economic contraction or not, these companies just don’t feel a pinch – at least not yet. Still, both stocks were halved from all-time highs in the fourth quarter.
These are the moments when you need to start accumulating. For a more accurate technical analysis, let’s look at the graphs.
Nvidia Stock Trading
Let’s start with Nvidia, where the price was not encouraging.
After a sharp drop in shares from the highest level since late March, a modest rise to the 10-week moving average rejected shares, as Nvidia is now close to the bottom for 2022.
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From here, the bulls should see Nvidia’s stock stabilize in the $ 155 to $ 160 range. If he can do this against the backdrop of a lot of bad news for the market, then we may have another rebound.
In particular, the rally could bring Nvidia back to the 10-week moving average, followed by the $ 195 zone. The zone rejected shares earlier this month. Above that, $ 208 to $ 215 can be on the table.
On the other hand, a break of $ 150 could open the door to more sales pressure. In particular, this can put the level of $ 115 to $ 125 in play.
Near this area we find a number of remarkable measures, including the lowest value for 2021 and the 200-week moving average. There is also a level of extension down near this zone (at $ 130), while the correction of 78.6% is just below this zone (near $ 110).
AMD stock trading
Shares of AMD held up a little better than Nvidia, which I don’t think many investors expected. In any case, he recently broke the key zone from $ 84 to $ 86.
This area is significant in the last two years and is also a 61.8% correction from the highest level of all time to the lowest level of covid-19 in March 2020. Finally, this is around where AMD found support earlier this year.
Now, breaking below that level, stocks are vulnerable.
If stocks fall, the $ 73.85 to $ 75 range is the first target down. The second target is $ 64 to $ 66, where AMD shares found a 78.6% correction, a 200-week moving average and a monthly VWAP measure.
However, the watch key is now $ 84. If AMD shares can bounce back before a significant retreat and regain that level, then we could look in the opposite direction.
In this scenario, going back over $ 85.50 returns $ 92 into play, followed by a 10-week moving average and a level of $ 100 to $ 104.55 – the last of which is the highest since last month.