Is NVDA done correcting? LONGNVDA shot up on earnings two months ago and more or less went sideways until
mid July when it trended up for a week and then reversed downward.
On the 2H chart, I have placed both a VWAP anchored to the earnings date as
well as a volume profile. Price is currently above the 0.5 Fib level as well
as at one standard deviation above the mean VWAP and above the POC line of
the volume profile. The mean VWAP and POC are confluent at about 422.
I suspect that it is at this level that volatility will be the highest and at where
buyers will step in to open a trade shares of NVDA that have been oversold
and are undervalued. Because of that, I will place NVDA on my watchlist for
a long trade when it trends down approaching 422. The stop loss will be
418 or about 1% while targeting the recent double top of 475 and so a zone of
horizontal resistance confluent with dynamic resistance in the red line of
two standard deviations above the mean VWAP. Confirmation of an upcoming
reversal is the histogram of the zero-lag MACD going red to green. NVDA has
had a great run this year (220%) and its heavy presence in the AI megatrend
bodes well for a good continuation.
