Will you dare to short NVDIA at 122? Shorting NVDIA something no one would have dared to do in 2024 and rightfully so. It was having a massive uptrend and there was no reason to go against it.
2025 is completely different story. The emergence of DeepSeek has dampened its prospects and NVDIA saw a massive double top at 152 (The same time S&P reversed at 6144).
It has now fallen to a low of 107 and made its way back to 121 where there is a pattern to sell. Here is our thinking:
1) It is in a daily downtrend
2) It is following the H4 trend
3) There is a pattern to sell
4) RSI divergence is present
We will sell around 122 with a stop loss of 125.50 and target the low of 107.
Yes, we just follow the trend and not the news or sentiments.
Sellnvidia
NVIDIA crucial box to break above or below to $50 - You choose?This analysis is based on TWO EXTREMES, where I'll share my thoughts at the end.
It's a weekly chart where a rectangle (uncertain) pattern has formed and now we are waiting for the price to break above or below the Resistance or Support.
Nvidia has spent Billions on technology that wasn't that necessary to begin with.
DeepSeek's AI operates like a team of specialists, each focusing on their own area—think of it as having a bunch of mini-experts, like a lawyer AI for legal questions.
This setup, known as a "Mixture-of-Experts" architecture, allows DeepSeek to handle tasks more efficiently by activating only the relevant experts when needed.
In contrast, models like ChatGPT process vast amounts of data all at once, which can be more resource-intensive. DeepSeek's approach leads to faster responses and lower computational costs, making it a game-changer in the AI field.
Also DeepSeek’s AI models are way cheaper, so companies don’t need Nvidia’s pricey GPUs.
DeepSeek is messing with Nvidia’s dominance by offering faster, cheaper solutions.
Cutting AI Costs: AI training costs are dropping, and Nvidia’s expensive gear isn’t the go-to anymore people and investors flock to other investments - this could bode badly for the stock and we could see a MAJOR crash with the share.
So I am more inclined for the share price to drop fundamentally but also technically.
Price<20 but >200MA
Price has broken below the uptrend
Pattern Rectangle (Box)
Target up $190
Target down $50 - Which is more likely in the events of the above but frightening too for tech stocks going forward.
WHat do you think?