3 Big Stock Charts for Tuesday: Nvidia Corporation (NVDA), 3M Co (MMM) and Goldman Sachs Group Inc (GS)

InvestorPlace - Stock Market News, Stock Advice & Trading Tips

A strong PPI number this morning has the markets looking higher. The breakout potential of the broad market indices and individual stocks is now growing even stronger. The strength is based on investors and traders trying to get cash from the sidelines and chasing equities higher.

Today's three big stock charts takes a look at the potential for a post-earnings bounce in Nvidia Corporation (NASDAQ: NVDA ) shares and the indication that 3M Co (NYSE: MMM ) and Goldman Sachs Group Inc (NYSE: GS ) are ready to break higher as a volatility trend is forming.

Nvidia Corporation (NVDA)

Nvidia shares are now more than 10% lower than their post-earnings highs on no real news. The activity is related to profit-taking after the company reported better-than-expected earnings results.

With NVDA shares trading lower, the trend is providing traders with an opportunity to grab them at a discount. This is the same type of activity that we have seen in Nvidia stock in previous earnings seasons.

The charts are identifying support at $105 from the stock's rising 50-day moving average. This trendline has held as support for Nvidia since February, 2016.

Another day of selling for NVDA will also take the stock into technically oversold territory. This will identify that the selling pressure, which has been on high volume, is likely to ebb and give way to buyers. Any increase in buying pressure will snowball at that point and start the move higher.

3M Co (MMM)

Materials companies have been a leader in 2017 as the Trump administration's plan for investing in infrastructure has obvious fundamental positives for the group.

3M has been consolidating since December as the stock has traded around a mean price at $177. Over the last two weeks, the potential energy that built during this consolidation has become kinetic as MMM stock is now shooting higher.

Recent moves have confirmed the volatility as 3M shares just broke their top Bollinger Band. This suggests that the volume and price movement of MMM shares should become more rapid to the upside.

The additional volatility is the result of 3M shares breaking through the technically significant $180-mark. This price has represented the top of the range for MMM stock dating back to July 2016.

The break above $180 will attract volume from technical traders as it combines with the volatility rally and a new bullish trend from the all-important 50-day moving average.

Goldman Sachs Group Inc (GS)

Financials have led the market higher as inflation and higher interest rates indicate the type of growth that almost always favors financials. Goldman Sachs shares are trading 69% higher than this time 12 months ago. For comparison, the financial ETF is only 31% higher. The leadership of GS stock is clear.

Shares of Goldman Sachs are now making a run at $250. A move above $250.70 will put GS stock into new all-time high territory. The potential for the break higher isn't unnoticed by traders as we've seen volatility and volume increase over the last few trading sessions.

Yesterday's trading saw Goldman Sachs shares move above their top Bollinger Band, indicating that we're ready to see a fast and aggressive move higher. This, combined with new highs, will serve only to attract more swing traders to GS.

If there's an asterisk to pay attention to here, it's the fact that Goldman Sachs shares are now trading in long-term overbought territory. This means that we're likely to see GS stock take a "corrective" move at some point in the next three to six months. For now, the short-term movement is in the hands of the bulls.

As of this writing, Johnson Research Group did not hold a position in any of the aforementioned securities.

More From InvestorPlace

The post 3 Big Stock Charts for Tuesday: Nvidia Corporation (NVDA), 3M Co (MMM) and Goldman Sachs Group Inc (GS) appeared first on InvestorPlace .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story


Other Topics


Latest Markets Videos


    InvestorPlace is one of America’s largest, longest-standing independent financial research firms. Started over 40 years ago by a business visionary named Tom Phillips, we publish detailed research and recommendations for self-directed investors, financial advisors and money managers.

    Learn More