NVIDIA and Tesla TechnicalsNVIDIA
As much as I want the train to keep moving forward, we are at an inflection point where the bears are starting to really pile in. The bulls are pulling back, and we may experience that -10% S&P correction. Everyone says this would be "healthy" for the markets, which would align in the traditional sense.
However, we live in a different time now. With emerging markets and excess capital, companies are healthy. But, the economy is weakening. The Biden Administration has propped up the stock market with faulty "jobs numbers" adding ridiculous amount of government employees to supplement Jots Jobs Reports.
Furthermore, this is the time of year for reallocation for major capital holders. Hence, the volatility increase.
I fear the Bears are taking advantage of this time to pile on. NVIDIA had an increase of shorted shares by 4.5% in December. If the Bears take over and the bulls pull back NVIDIA will move down to $120
NVIDIA at $120 is inside "The Golden Fibonacci Pocket", a round number, AND the HIGHEST VOLUME Price level for the entire year of 2024.
3 VERY significant technical reasons big money will wait for this $120 level to be reached.
It will ALSO be where the Shorts of $139-$140 will cover.
This could spawn a V shape recovery from $120 flying HIGH straight to $160 ($4 Trillion Market
Cap). Apple is at $3.85 Trillion.
NVIDIA currently does more Net income with 30% the Revenue that Apple does.
Who will reach $4 Trillion first?
TESLA
In a much more simple analysis. TESLA is currently testing the 78% Fibonnaci Level. Already flushed through the short time frame "Golden Pocket". So, the 78% Fib is the last line of support for TESLA.
The break of the 78% Fib level will be a clear sign of a move down to a lower low, with support being around the bottom of the downtrend channel seen in the chart.
IF interested in shorting TESLA is the better one.... currently. However, that could change.
I personally will only Day trade SHORTING TESLA looking for the $365 level to start buying in, and dollar cost averaging down. TESLA is here to stay, I'm sure. Same with NVIDIA
JUST REMEMBER... Apple has gained 60,000% since 2001.... and I believe NVIDIA is the future. Because, AI is the future. Like smart phones were the future. I believe AI will be bigger than Tele-Communications.
