Semiconductor stocks like Nvidia, Broadcom and Lam Research sold off on Friday, but they and 14 other names remain on Investor's Business Daily's Leaderboard, as the latest reading on inflation failed to raise any red flags on the market.
Additionally, six stocks have earned a spot on the watchlist, including Micron, Robinhood Markets and IPO Leader Reddit.
Chip stocks remained in focus Tuesday as Nvidia stock and Lam Research gapped down below their 50-day moving averages and Broadcom bounced off that benchmark.
Across all sectors, telltale action around key moving averages provides investors with valuable insights on both how to buy stocks and when to sell.
Nvidia Stock, Broadcom And More Put Focus On Moving Averages
Moving averages serve as important benchmarks that reveal where stocks are finding support or hitting resistance. Current action in IBD Leaderboard members like Nvidia, Broadcom, Lam Research, Robinhood, GE Vernova, Alphabet, AppLovin, JPMorgan Chase and others continue to prove that point — for better or worse.
Nvidia gapped down to kick off the post-Labor Day week of trading. With its latest earnings report now behind it, see if the artificial intelligence giant can back above its 50-day line to show strength and resilience. While down for the day, Nvidia managed to mitigate Tuesday's loss and close right around the 50-day line.
As it did on Aug. 20, Broadcom found support at and bounced off its 50-day line Tuesday. closing the session with a small gain. The chip designer faces its next text when it reports earnings on Thursday.
A slew of other Leaderboard members have dropped below or are trying to cling to their 50-day benchmarks, including Micron, Robinhood, GE Vernova, DoorDash.
Meanwhile, several Leaderboard stocks trade above the 50-day line. Those include Google stock, JPMorgan, Wheaton Precious Metals,
Featured in this column on July 22 as it broke out from a flat base, Wheaton continues to build on that move. The stock now trades slightly above the latest buy range after holding support at its 50-day line last month.
Boeing Leads More Stocks To Watch In Tested Market
As a gauge of the broad market indexes, the Nasdaq and S&P 500 remain above their 50-day lines but below their 21-day exponential moving averages. The S&P closed the day just shy of the 21-day line.
Nvidia is trying to weather the current volatility, while Boeing has flown into a buy zone that ranges from 226.77 to 238.11.
While clinging to support at its 50-day line, Amer Sports looks to bounce back into 40.21 to 42.22 buy zone it entered last month.
Featured in this column on Aug. 26, AppLovin stock continues to show strength. Shares now trade beyond the 428.99 to 450.44 buy range.
As IBD Leaderboard stocks — as well as the market indexes — test their mettle, investors should keep risk management top of mind. And that starts with tracking the action of Nvidia stock, Broadcom and others around their moving averages.
Follow Matthew Galgani on X (formerly Twitter) at @IBD_MGalgani.
