rewrite this title The Daily Breakdown: Nvidia looks for new record highs

Nvidia stock is trading near all-time highs after its CES 2025 presentation. The Daily Breakdown takes a closer look.

Tuesday’s TLDR

NVDA leads chip rally
Bitcoin regains key $100K mark
TKO bulls look for a breakout

What’s happening?

We had a nice rebound in the markets yesterday, with Bitcoin leading the way. Investors’ “risk-on” appetite was clear, as tech and semiconductor stocks helped lead the way. 

We were watching for a breakout in semiconductors via the SMH ETF and that group had a strong showing yesterday. 

With Nvidia wowing at the Consumer Electronics Show (CES) last night in Las Vegas, bulls are hoping that Nvidia — which is hitting all-time highs in pre-market trading — can continue to power higher, leading the rest of the chip space higher as well. 

Check out NVDA’s chart right here.

Perhaps a rebound in chip stocks, crypto and tech can help bolster some of the sour sentiment we’ve seen in the market lately. On the plus side, seeing these types of bearish sentiment readings can lead to a “washout” in the market and bring about a rebound. We’ll see if that pans out before earnings season begins next Wednesday.

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The setup — TKO Group

Yesterday we mentioned TKO Group, the parent company that owns WWE, which just streamed its first live event on Netflix last night. 

The stock rallied to all-time highs in mid-December and has quietly pulled back. Amid this consolidation, TKO stock has found support near $140 and the rising 21-day moving average. 

Now bulls are wondering if it can clear downtrend resistance:

If it can clear downtrend resistance, bulls will look for renewed upside momentum, potentially putting the recent highs near $150 back in play. 

However, if TKO can’t break out, then recent support will be on watch. A break down below current support could make TKO susceptible to more profit-taking and thus more downside action in the short term. 

Options

For some investors, options could be one alternative to speculate on TKO. Remember, the risk for options buyers is tied to the premium paid for the option — and losing the premium is the full risk. 

Bulls can utilize calls or call spreads to speculate on further upside, while bears can use puts or put spreads to speculate on the gains fizzling out and TKO rolling over. 

For those looking to learn more about options, consider visiting the eToro Academy.

What Wall Street is watching

BTC – Bitcoin regained the critical $100K mark yesterday, climbing over 4% on Monday. The largest cryptocurrency by market cap has now rallied for seven straight sessions. Follow Bitcoin’s price action here. 

META – On Monday, Meta announced several new board members, one of whom included Dana White. White serves as President and CEO of UFC, who added that, “I am a huge believer that social media and AI are the future.” 

UBER – Yesterday it was an accelerated buyback plan for Uber and today it’s news with Nvidia, after the companies announced they are collaborating on ways to support the development of AI-powered autonomous driving technologies. 

Disclaimer:

Please note that due to market volatility, some of the prices may have already been reached and scenarios played out.