I’m sharing a weekly chart analysis for NVDA, focusing on its current position near historical highs at $129 after a bounce from $90.
From the logarithmic scale chart, it's clear that NVDA has been in a long-term progression channel since July 2015. Currently, the price is positioned on the upper deviation line of this channel, indicating a potential resistance area. Given this position on the logarithmic scale, I am leaning towards a short bias as it suggests we could see a pullback or correction.
I’ve also identified two cup & handle patterns, each with their respective targets. However, these patterns will only be validated based on the next price movements.
While there is still a blue support trend and a red resistance trend in play, the price near its historical highs and its proximity to the upper boundary of the progression channel suggest that a downward movement could be more likely. However, due to the large time scale of the weekly chart, we should wait for further confirmation of a downtrend before taking a short position.
For now, I recommend caution and suggest waiting for a confirmed breakout or breakdown from the current channel before making any decisive trades. I’d love to hear your insights and thoughts on this setup.
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.