Two new trades (NVDA & RTN) from our Trading Desk Analysts, Lester Davids, and two stocks to put on the radar (Tencent & Baidu).
#Trade 1: Trading the Bitcoin bounce
Nvidia Corporation (NVDA: Nasdaq) US technology company.
It designs graphics processing units for the gaming and professional markets, as well as system on a chip units for the mobile computing and automotive market.
Nvidia has lagged the recent Bitcoin rally.
Cryptocurrency mining has historically fueled demand for the company’s chips however the decline in the Bitcoin price, weaker chip data out of South Korea, as well as trade wars rhetoric has seen NVDA decline from it’s recent peak (24/04) of $192.81 to it’s last close of $145.12.
I don’t know whether we will see $2 lower on the share however this may be a short-term buying opportunity.
Entry level around $143.50 SL: $132 TP1: 163 TP2 180
#Trade 2: Getting a bit Defensive
The Raytheon Company (RTN: NYSE)
Major U.S. defense contractor and industrial corporation with core manufacturing concentrations in weapons and military and commercial electronics.
Currently trading at 19% discount to S&P500 on a relative PE basis (16.97 v 20.98).
Potential beneficiary of rising global tensions.
Price has been consolidating in a sideways trading range since February potentially forming a bull flag – you can read up more about bull flags on the Trade1027.co.za site.
Covered by 12 Wall Street analysts with 10 Buys and 2 Holds with an average 12-month target price of 210 which gives us a +16% potential return.
Positive price confirmation will be a close above the $184.39 level.