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Week Ahead: Long or Short Nvidia and the AI Theme?

 




Week Ahead, 25 Nov 2024

Macro News:
All eyes were on Nvidia Corp this week as the company reported another set of record earnings. However, the revenue forecast fell short of analysts' expectations, causing the stock price to decline by -3.22% on Friday.


Based on historical price action, the stock often experiences profit-taking or selling pressure after earnings announcements. Technically, as long as NVDA remains above the 150-day Simple Moving Average (SMA), the medium-term uptrend momentum persists. If NVDA trades below this level, we will reassess not only Nvidia Corp but also the overall medium-term trend of the AI theme.




Medium Term:

·       S&P 500: The S&P 500 index is retesting the 6,000 level, with immediate support at the 5,800 level.

·       STI: The Straits Times Index (STI) has returned to the resistance zone at 3,730. No significant technical signals have been observed. If momentum continues, the index could move towards the 3,860 level.

·       Hang Seng Index: The Hang Seng Index is nearing the 19,000 level, a key support level (Fibonacci 61.80%). Technically, the ability to maintain above this level indicates that the uptrend remains intact.


Long Term:

·       S&P 500 remains upward

·       Hang Seng Index (HSI) remains upward

·       Straits Times Index (STI) neutral to upward trend.


Headlines Next Week:
- OPEC+ Meeting
- US FOMC meeting minutes, PCE Inflation data, 2nd est 3Q24 GDP, Shorten trading week
- China Nov PMI
- SG Oct CPI, Ind Prod

Disclaimers apply



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