MDA - Market Direction Analysis

[LG]

NVDA <----- One of the stocks I am looking at that should outperform the coming market ramp is NVDA. It is farily oversold per my work and it is currently basing in the area of the lows for the 4th Qtr of 1999 to 1st Qtr of 2000 consolidation.

However the basing price action has formed what is very close to a descending triangle originating from the August low, which is a negative as a break to the norm would be down. NVDA currently (per QFeed) has a P/E multiple of 7.2, not bad for a tech stock.

This stock looks ripe for a technical rally, however some more down side here first is suggested by its current trading pattern especially if the market continues down. However, I would not be surprised to see the pattern negated given NVDA's current oversold condition.

As an additional note, NVDA has a consolidation low of about four bucks established back in early 1999.

I think when the market finally ramps this stock will out perform. This is one to keep an eye on first for some possible additional down, but more importantly for a possible significant ramp...

Regards,
LG