SK Hynix made an impressive debut on the Nasdaq after its successful American Depositary Receipt (ADR) offering in $150. Shares opened at $170 They are currently trading close $174almost $24 In the session.
It’s easy to understand the enthusiasm. SK Hynix is an important supplier of the high-bandwidth memory (HBM) chips that power Nvidia’s AI processors. Simply put, SK Hynix provides the fuel that helps Nvidia’s AI engine run. As investors embrace SK Hynix’s growth story, Nvidia is also benefiting. Nvidia shares are currently up by more than $7or 3.48%to around $209.75.
Technically, today’s rise is significant.
The stock spent late June and early July testing its switch 200 day moving averagecurrently in $191.67. Buyers successfully defended this level in both June 26 and July 7. Although the price briefly fell below the moving average during the June 26 test, it quickly recovered, consolidating the level as key support.
This second successful defense gave buyers the confidence to go higher. The initial rise carried the stock above the 100 hour moving averagebut sellers initially leaned against it 200 hour moving average close $205.22. After a health decline he was successfully retested 100 hour moving average close $199.41Buyers returned with renewed conviction.
Today’s rally has pushed Nvidia above the level The 200 hourly moving average is at $205.22which turns this level into a major support in the short term. The assembly was also surveyed 38.2% bounce Down from the record high in May at $207.63adding another bullish technical development.
The next upside target comes at 50% retracement near $213.14. A sustained move above this level would strengthen the bullish case and open the door for a push towards the all-time high $236.47.
But right now, the focus is much closer. The 200 hourly moving average at $205.22 is the key gauge. As long as the price remains above this level, buyers remain firmly in control. A return below would shift the technical bias back toward neutral.
It’s bullish for Nvidia, thanks to SK Hynix stock rising like rocket fuel. Jenson Huang doesn’t mind filling Nvidia’s rocket ship.
