Nano Nuclear Energy
Shares of Nano Nuclear Energy (NNE) are trading 20% higher today.
The stock made our Three Stocks list two weeks ago as it was consolidating at $7 after its initial ascent to $10.
The retracement of a stock’s price from $10 to $8 or $7 is a normal event for a stock in a bullish trend preparing to break through $10 on its way to $12.
Nano Nuclear Energy completed that consolidation and is now moving higher on increased volume as speculators start to take interest.
Nano Nuclear develops micro-nuclear reactors and related products for use in the United States.
The company’s competitors include GE-Hitachi, Fluor Corp., and Rolls Royce.
Investors should weigh the speculation they are making in investing in a startup IPO like Nano Nuclear Energy.
Shares have now broken above $10 and are headed for their next technical battle at $12. It is normal to see a small price stock run into resistance at this price level before advancing to its next target of $15.
Dell Technologies
A follow-up from yesterday’s comments on Dell Technologies (DELL)...
Dell shares rallied another 5% this afternoon on increased volume as technical traders react to the stock’s bullish improvements.
Yesterday’s move was based on the stock breaking above its 50-day moving average.
The rally was stopped in its tracks by Dell’s 20-day moving average at $144.50.
This morning's move above that short-term “Trader’s Trendline” has added buying power to the shares, which are now targeting their next short-term target of $160.
Dell’s management provided mixed guidance for the next two quarters, like many other companies in the AI service industry.
This outlook initially sent traders into the market to take profits.
We’re now seeing the other side of that trade as investors are buying the stock with the improved long-term outlook from Dell’s management. Dell maintains its long-term target of $200 in the second half of 2024.
NVIDIA
NVIDIA (NVDA) shares rallied 4% on Tuesday with heavier volume coming in on the stock.
The increase in volume and price puts NVIDIA in the number one spot in terms of the world’s largest market cap stock. Microsoft now moves to number two with Apple at number three.
NVIDIA heads into the second half of the week knowing that the Select SPDR Technology ETF will be buying around $10 billion of its shares.
The rise also comes as a bevy of NVIDIA executives are reporting the sale of their insider shares.
The company’s CEO, Jensen Huang, filed to sell 120,000 shares of NVIDIA, worth around $15.5 million. It is normal for insiders to sell shares in a stock after it has made a strong run, like NVIDIA.
NVIDIA shares continue to trade with extremely overbought readings from its RSI, suggesting that the stock needs to see a healthy pullback at some point.
Think of this as a rubber band—the stock has stretched that rubber band to the point where it is near breaking. A small drop would allow relief from that overbought situation, which in turn would allow a more robust rally.
About the Author
Chris Johnson (“CJ”), a seasoned equity and options analyst with nearly 30 years of experience, is celebrated for his quantitative expertise in quantifying investors’ sentiment to navigate Wall Street with a deeply rooted technical and contrarian trading style.