2 Champion Traders Bought This Stock

To be the best sometimes you simply have to follow the best and see what they are doing. That old adage applies to trading Nvidia recently when, on the same day, both Oliver Kell, who posted a 941.1% gain to win the US trading championship a few years ago, and Mark Minervini bought it.

Mark has famously become one of the most successful traders of all time, and has taught many other traders to reach levels of success that have ranked them in the top 10 in US trading championships also.

So what is it that both men saw on the same day to warrant a conviction buy in the former stock market leader, Nvidia?

Key Points

• When a technical breakout occurs on high volume, the signs are positive that momentum will continue.
• Two champion traders both spotted the same pattern on a leading stock and entered on the same day.
• To emulate their performance may be challenging but such patterns appear daily and can be spotted on many top stocks.

Technical Trend

As you can see in the chart below, for about six months, Nvidia oscillated in a range from near $400 per share to close to $500 per share. Each approach to the upper part of the channel was met with selling and resistance held in August, November and December.

Similarly, lows held firm in August and November, highlighting the volatility of the share price that spiked and crashed in the same month numerous times over a short six month period.

And then, all of a sudden, a material change in character appeared in early 2024 when, on a single day, Nvidia burst out of its consolidation channel with conviction.

You can see precisely the day when Nvidia broke out on high volume and serious momentum. On a single trading day, the share price shot up by about $30 per share and continued to run a full 11% in just a matter of five trading days.

That breakout above the firm resistance level just north of $500 per share, on volume, was the key signal to trigger both men to enter, and it’s already been a highly profitable trade for both. Indeed, Oliver Kell commented in a recent discussion that Nvidia remains his largest position.

If you want to emulate the two star traders, it will be difficult because it requires a lot of dedication to spot these patterns as they occur in the markets across a wide number of stocks, but if you narrow the list to your own watchlist, you can often keep a close eye on such patterns and take advantage when they occur intermittently. They don’t present themselves often. As you can see in the chart above, it took six months for the breakout but once it happened, the share price soared. Being able to pounce at a moment’s notice is a crucial aspect of success in this type of trading.