NVDA: Bullish, But Be Aware of These Patterns.
• NVDA is about to retest the previous top at $275.89, after a quick correction to the $258.50;
• NVDA is in a very strong bull trend, and the last correction couldn’t even hit the 21 ema in the daily chart;
• By breaking the resistance at $275.89, NVDA would trigger another bullish pivot point, reinforcing the bullish bias. Its next target is the $289.46, which is better seen in the weekly chart;
• However, it is important for NVDA to break the $275.89 as soon as possible, as if it does a top sign in this area, the market may see a Double Top – we discussed this possibility last week, in our last analysis (the link is below this post, as usual). If it loses the $258.50 (previous bottom), then it’ll give another confirmation sign of a bearish reversal.
• In the weekly chart, we see that NVDA reversed the bear market by doing an upwards breakout from its Descending Channel, and it triggered an IH&S chart pattern;
• The $289.46 is a previous top from March 2022, and it is a technical resistance for us now. It appears NVDA wants to hit this target. So far, there’s no top sign nor bearish reversal structures;
• In theory, a pullback before it hits its target would be normal, as pullbacks after the breakout of the neckline of an IH&S occur 65% of the time (Bulkowski, Encyclopedia of Chart Patterns);
• If NVDA triggers a sharp correction in the weekly chart, I see it retesting its 21 ema next;
• I’ll keep you updated on this, as usual.
Remember to follow me to keep in touch with my daily analysis!
• NVDA is in a very strong bull trend, and the last correction couldn’t even hit the 21 ema in the daily chart;
• By breaking the resistance at $275.89, NVDA would trigger another bullish pivot point, reinforcing the bullish bias. Its next target is the $289.46, which is better seen in the weekly chart;
• However, it is important for NVDA to break the $275.89 as soon as possible, as if it does a top sign in this area, the market may see a Double Top – we discussed this possibility last week, in our last analysis (the link is below this post, as usual). If it loses the $258.50 (previous bottom), then it’ll give another confirmation sign of a bearish reversal.
• In the weekly chart, we see that NVDA reversed the bear market by doing an upwards breakout from its Descending Channel, and it triggered an IH&S chart pattern;
• The $289.46 is a previous top from March 2022, and it is a technical resistance for us now. It appears NVDA wants to hit this target. So far, there’s no top sign nor bearish reversal structures;
• In theory, a pullback before it hits its target would be normal, as pullbacks after the breakout of the neckline of an IH&S occur 65% of the time (Bulkowski, Encyclopedia of Chart Patterns);
• If NVDA triggers a sharp correction in the weekly chart, I see it retesting its 21 ema next;
• I’ll keep you updated on this, as usual.
Remember to follow me to keep in touch with my daily analysis!
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