Asset Watch
Tuesday, February 27, 2024
Add it all up, and the bulls continue to celebrate. But will the good times last?
Robust momentum cuts both ways and to avoid getting caught on the wrong side, pay close attention to NVIDIA’s 50-hour moving average. The metric is a solid momentum gauge and provided support during the early-to-mid February corrections. The upward-sloping white line marks short-term resistance, and NVIDIA corrected after tagging the trendline on Feb. 23.
However, the two combine to create a nice uptrend channel and higher highs will continue to materialize as long as NVIDIA trades above its 50-hour MA.
So, will the rich get richer, or did the recent surge mark peak AI optimism?