Thats two lower highs for NVDA...What is next???
NASDAQ:NVDA NASDAQ:QQQ TVC:VIX
NVDA: A Looming Breakout or Breakdown?
Nvidia (NVDA) has been on a rollercoaster ride lately, with its stock price exhibiting significant volatility. The recent formation of a lower high and a potential lower low suggests a downward trend may be in the works.
A key support level lies around $98, marked by trendline support that held firm on February 21, April 22, and August 5. If NVDA breaches this level, it could signal a short-term reversal of the uptrend.
Analyzing the 30-minute timeframe, we see a recent break below a bearish pennant, indicating further downside potential. If this bearish scenario unfolds, a price target of $85-90 seems plausible.
Interestingly, this price target aligns almost perfectly with NVDA's 200-day Simple Moving Average (SMA). If the stock does indeed reach this level, it could present a compelling buying opportunity.
However, the broader market may face challenges if NVDA's downward trajectory continues. Recent economic data, such as weaker job openings and rising unemployment, suggests a deeper market correction might be on the horizon.
While the Federal Reserve is expected to cut interest rates at its next meeting, a larger-than-expected reduction could trigger market panic.
The next few months promise to be exciting, and this period can offer opportunities for significant wealth creation. For now, I'm waiting on the sidelines, patiently observing the market's dynamics.
Remember, Warren Buffett's recent moves are a testament to the importance of following the market's trends rather than blindly fighting against them.
