To The Moon

Eh, everyone! Let's have a chit-chat about stock splits today. So, why do companies suka-suka split their stock and what’s the deal with it? The main benefit of a stock split, especially when the stock price is as high as the Marina Bay Sands sky park, is that it makes the stock cheaper for the average ah pek and ah soh. Imagine a stock priced at $1000 per piece versus $100 per piece—of course more people can afford the $100 one lah. When more people jump on the bandwagon, the stock price goes up faster than the queue at your favorite hawker stall. So, will $NVIDIA Corp(NVDA)$ rocket to the moon because of this? Let’s analyze the technicals and see.

Looking at the charts, wah piang eh, on Friday, Nvidia really went bananas, shooting past the $1045 level. But then, like the uncle at the kopitiam who buys 4D, some people took their winnings and bolted, causing the price to dip below $1045 by Thursday’s closing. Despite everything else being down on Friday, Nvidia was still happily climbing and broke past the $1045 levels. We’re also trending above the 50 Day Moving Average (MA) and the 200 Day MA, which is more solid than an HDB flat. This chart is more bullish than an auntie at a sale.

Next up, let’s kaypoh the options market. We’ve got a 0.75 Put:Call ratio, which is also slightly bullish—like when the durian seller says, “Got guarantee!” And guess what? People are betting big-time on Nvidia at the $1100 and $1200 levels. So, if Nvidia reaches there, sure got people cashing out, which will put a lid on our party.

So, what’s the price target before the split? Confirm got people thinking that with the stock price being cheaper, more people will buy, pushing Nvidia's price up. Another positive sign for Nvidia is that the industry might go through a hardware upgrade soon because everyone is moving towards the AI PC—sounds chim, but it means more sales for Nvidia lah. But will it be enough to break through the $1100 and $1200 ceiling?

My personal hunch? We might see Nvidia breaking through the $1100 mark and start dancing around $1100 and $1200. But if the stock price tumbles, we’ve got some support at $1000 and $950—like having your kopi-o at a trusty kopitiam. What do you guys think? Share, like, and comment lah!