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Nvidia stock price is extending its gains on Friday as the markets absorbed the panic selling that occurred due to growth concerns. Most of the US equities and the benchmark indices have started the session in green as the markets set to close the week on a higher note.
The S&P 500 index opened 36 points higher on Friday, April 26, as the selling pressure decreased. The Nasdaq 100 index also showed a similar trend and retested its weekly high in the pre-market hours. The improved market sentiment can be attributed to expectations of sooner-than-expected rate cuts.
Nvidia stock refreshed its weekly highs in the opening hour and changed hands above $841 at press time. Technical analysis also pointed toward a potential breakout from the downtrend, which was initiated after a drop from the March high of $967.66.
The GDP numbers for Q1 were released earlier this week. The data revealed sluggish and slower-than-expected growth in the US economy in the first quarter of 2024. On an annualized basis, the world's biggest economy expanded by only 1.6% from January to March.
This was a major surprise for the market participants and analysts who were expecting a 2.5% GDP growth in Q1. As a result, equity markets, including Nvidia shares, opened lower on Thursday. However, most of the losses seem to have been reversed in the opening hours on Friday.
From a technical standpoint, NASDAQ: NVDA seems to be gaining strength after a strong selloff in the first half of April. However, as I forecasted, the shares have found strong support, around $772, and are now trading almost 13% above their monthly lows. As long as this support level holds, Nvidia stock price prediction will remain bullish on the daily timeframe.
It is also visible on the following chart that the price is retesting the previous support of $840 which is now acting as a resistance. A reclaim of this level would also confirm the breakout from the downward trendline, which could be considered a major reversal signal.
