Nvidia is down more than 5 percent from its recent high, but the charts suggest the hot chip stock's rally is about to resume.
According to Todd Gordon, founder of TradingAnalysis.com, Nvidia is one of the few stocks in the market right now worth a buy. He pointed to two bullish technical indicators that lead him to think the stock is set for a breakout.
The trade: Gordon suggested buying the June 1 weekly 250/255 call spread for $1.65, or $165 per options contract.
Bottom line: Gordon expects Nvidia shares to rally as high as $255 by Friday, June 1 – or roughly 4 percent in about two weeks.