NVIDIA (NVDA) shares are finally starting to make a move.
The stock has been walking a tightrope around its short-term 20-day moving average for the last week. Today’s 4.75% rally was convincing in its size, but the move came in the form of light volume trading.
For those unaware, holiday trading sessions like today are historic for allowing stocks to be “pushed around” by traders.
In this case, NVIDIA feels like it needs a push as it appears that investors are taking stock’s latest 15% decline as an opportunity to diversify themselves from the market’s most lover stock.
We’ll see a regular trading session on Friday, but don’t expect volume to pick up as most market participants will be stretching the Fourth of July into a four day weekend.
Next week, keep an eye on the $125 and $120 price levels. A break below that lower $120 is likely to increase selling pressure on NVDIA shares over the short-term.
Longer-term, watch for NVIDIA to benefit from the seasonal strength that July should provide the technology sector.
Read more about technology’s seasonal tailwind here.
Paramount Global (PARA) stock surged almost 7% today as the company announced a possible deal between Skydance and National Amusements. The deal is reported by CNBC to have the potential to be completed by this weekend.
The deal would be the end of a lengthy drama over the future of the company as several twists have been introduced including reports that non-executive Chairperson, Shari Redstone, was reportedly unlikely willing to merge Paramount Global into another company.
Paramount has been pushing for a deal to as the company’s debt load has grown at the same time that sales have slowed. A possible deal with Skydance may bring some debt relief through significant cash injection.
Shares of Paramount Global have been in a long-term bear market trend since April, 2022. Today’s move, while positive, still puts the stock roughly 50% from trading out of that bear market trend.
Shares of Broadcom (AVGO) jumped 4.2% on Tuesday making it one of the best performing semiconductor stocks for the day.
The move fortifies support that was seen last week as the stock bounced from the $1,600 level, just above the stock’s 20-day moving average.
Two weeks ago, Broadcom stock initiated a 15% drop from its new all-time highs. The selloff came as NVIDIA shares had triggered profit-taking after the rebalance of the Technology Select Sector SPDR Fund (XLK).
Shares of Broadcom have been much fast to recover from that drop as they have now cleared $1,700 and appear to be targeting a move to their highs within the next week.
The outperformance of Broadcom shares to NVIDIA – in terms of the faster recover – suggests that investors are diversifying their holdings in the semiconductor sector away from NVIDIA, which has become an incredibly crowded trade.
This diversification would also benefit companies like AMD (AMD) and possibly Intel (INTC).
Short- and long-term outlooks both remain bullish for Broadcom shares with a short-term target price of $2,000.
