How much better can things get? Potential double-top.After reporting earnings earlier last week, shares of NVIDIA have been struggling to march higher, and if you wonder how this is possible despite astounding results, here is some food for thought. The tech giant has experienced an unprecedented rally of more than 360% since October 2022, and it is no secret that the revolution in the AI sector has highly contributed to this fact. It did not take long until the talk in the news was all about large corporations investing hundreds of billions of dollars to fund artificial intelligence research and about AI disrupting various fields and reshaping the world as we know it.
With this narrative playing out, the tech giant delivered outstanding performance for the second quarter of fiscal year 2024. Its GAAP-calculated operating income was up by 1,263% YoY, net income by 843% YoY, and diluted earnings per share by 854% YoY; then, on top of that, in the third quarter of fiscal year 2024, operating income increased by another 53% QoQ, net income by 49% QoQ, and diluted earnings per share by 50% QoQ.
While these are indeed incredible results, more often than not, when things are starting to be too good, the situation starts to beg the question of how much better they can get. Therefore, it is also important to consider the broader economic context. There is an apparent slowdown in multiple sectors outside of technology, like manufacturing, real estate, cargo transport, etc. These other sectors could eventually ripple into the tech industry, impacting overall economic growth and investment. Moreover, replicating the astonishing success of the last year indefinitely is improbable. Market saturation, increased competition, and potential regulatory changes are just a few other factors that could contribute to the normalization of growth rates.
Regarding technicals, RSI, Stochastic, and MACD have started to decline in the past few days (on the daily chart), accompanied by the formation of a potential double-top pattern. As these developments are bearish in nature, we are growing increasingly suspicious about the upcoming move in the stock. Consequently, we will be attentive to NVIDIA’s performance in the following days and weeks.
Illustration 1.01
Illustration 1.01 shows the daily chart of NVIDIA and simple support/resistance levels derived from peaks and troughs.
Technical analysis gauge
Daily time frame = Slightly bearish
Weekly time frame = Slightly bearish
*The gauge does not necessarily indicate where the market will head. Instead, it reflects the constellation of RSI, MACD, Stochastic, DM+-, ADX, and moving averages.
Please feel free to express your ideas and thoughts in the comment section.
DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not be a basis for taking any trade action by an individual investor. Therefore, your own due diligence is highly advised before entering a trade.
Chipmaker
INTC Mobileye Intel's self-driving-car unit IPOThe chipmaker said it would be taking public its Mobileye self-driving-car unit.
The initial public offering of Mobileye in the U.S. is planned for the middle of next year.
The move could value Mobileye at more than $50 billion, Intel being the biggest shareholder.
My short term price target is the 59usd resistance.
Looking forward to read your opinion about it.
#NVDA Long to 573.13 above 545.88Clear cut up trend dating back to November 24th, running into the yellow downward resistance trend.
First confirmation would be trading above the yellow resistance trend, and bouncing up from the current support trend once again.
Ill be watching above the 545.88 retest for a squeeze into resistance at 551.05
If we break up from there i would look for support on top of the current trading channel trend line, and again above the bold longer term trend.
The bold upper trend could end up being resistance, and give us a retracement down to 551.05 as a new support.
I think the current bottom trend will continue to serve as support as we approach the retest of 573.13, and i would consider the trade idea invalid if we fall out of it.
I would use that as a region of support, and id stop out below 527.93 or further down at 522.42
Long #AMD into 94.10This is how im watching AMD as we retest 94.10
Weve found support on the 3rd trend line up there with support touched at 90.76
If we break to the downside of that trend id look for a bounce on the trend below it above about 87.57
Strong support along that bottom trendline, especially into areas where we find past resistance.
Areas to watch on the downside should we fall out of trend.
84.70
82.58
78.82
73.83
$AMD. A great buy!This stock has taken a beating since its event and purchase of $XNLX and it retested that support, bounced and broke resistance. My price targets I tried to mark out in this video, and alot of these are smaller so if you are scalping then pay attention to those big ones, and fill in on the smaller time frames. $AMD is a no brainer. Great CEO, profits, expansion, and good products. im long $AMD
TSMC Breakout: Powering the AI MegatrendAfter consolidating for 2 months, this semiconductor powerhouse finally broke out to new all-time-highs from its rectangle yesterday. With most tech stocks still recovering from the correction of the last 2 weeks, such a move signals strong underlying momentum.
TSMC counts the world’s biggest tech companies as its customers - Apple, Intel, AMD, Nvidia, Qualcomm, etc - and arguably underpins much of the world’s tech boom and AI megatrend.
Part of the fuel for the breakout came from Apple’s new iPad Air announcement yesterday, utilizing their latest A14 Bionic, the first consumer chipset to run on TSMC’s most advanced mass production 5nm process.
This is one stock you’ll want to own for the long haul.
XILINX $XLNX "worth to watch stock"The positive upbeat news coming for chip makers and $XLNX is one of the one worth to watch for a new uptrend. $113.36 is a buy point but if you want to take a risk you may get it above $103.74
12 months Consensus Price Target: $99.24
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Please don't trade according to the ideas, rely on your own knowledge.
Thx
AMD buy coming off great earningsNASDAQ:AMD Looking to buy the 53.50 pivot against 51.50 and scale in my second half once it moves. All of the moving averages are trending up in ascending order. Great fundamentals with it being 1st in its group. The downward move off the earnings candle was most likely due to them cutting their forecast even though earnings was good; however, it found some support at that 50 level with the 50 day MA being right below that.
My thoughts on AMD. Might see the next chip maker drop
AMD is a well known chip maker but the earnings expectations are way to high in the tech sector at the moment and like Nvidia got hit by the market, AMD will also get its slap. We build a nice head and shoulder and the drop might get caught between around 10$-13$. There we will have a strong technical support and we will see what happens. Butttt AMD got really strong in the past year and they have brand new chips in stock so intel got passed.
Just my opinion so make your own research
And like always
May the markets be with you