Eseandre Mordi
● Market watcher Don't follow Shardi B If You Hate recently pointed out that Nvidia ($NVDA) is "about to go blue sky," meaning the stock could be heading toward fresh record highs. The stock closed at $195.30, up nearly 2%, as it pushes against a key resistance around $196.
● The technical picture looks strong. Nvidia's trading comfortably above its 20-, 50-, and 100-day moving averages—a bullish setup that often signals more upside ahead. Support is holding around $179–$185, and momentum indicators like the RSI at 65 suggest there's still room to run before things get overheated.
● "Blue sky territory" means no historical resistance above—nothing to stop the stock if it breaks through. That said, there's always risk of a pullback or profit-taking, especially since Nvidia carries huge weight in the S&P 500 and NASDAQ 100. A stumble could drag down the indexes, though right now the technicals look solid.
● Beyond the chart patterns, Nvidia's strength matters for the broader market. The company's rally fuels AI stock momentum and investor confidence. Analysts note that when Nvidia does well, the major indexes typically follow, given its outsized presence in tech ETFs like SOXX and QQQ.
● As market analyst put it, "Keep in mind this makes up a huge portion of the indexes—so good for everything!" It's true—Nvidia's moves ripple through the entire market. If the stock clears $196, it would confirm the breakout and potentially set the stage for new record highs, cementing Nvidia's role as the engine driving the AI rally.
Eseandre Mordi
