NVDA at $172.00???Disclaimer: Please note that this analysis is for educational purposes and is not a recommendation to buy or sell. I'm sharing a technical perspective based on chart patterns. Before making any investment decisions, it's always good to do your own analysis.
Looking at the daily chart of NASDAQ:NVDA , we can see that the stock is about to break out of a symmetrical triangle . Basically, what's happening here is that the price is "squeezing" between support and resistance until the moment of breakout. And when that happens, we usually see a stronger move in the direction of the breakout.
The target for this breakout is projected by measuring the vertical height of the triangle (the distance between the highest and lowest points of the pattern). We then add this value to the breakout point, which in the case of NVDA , gives us a target around $171.95 . So, if the breakout occurs, that's the range where we can expect the price to go.
However, it's worth noting that symmetrical triangles aren't always the most reliable patterns. Many analysts point out that breakouts don't always result in strong or sustained moves. This is because the triangle can form during both consolidation phases and potential reversals, and it’s not always easy to determine which direction the price will go.
Additionally, authors like Martin Pring in Technical Analysis Explained and Bulkowski highlight an important drawback: when the breakout occurs near the apex of the triangle (the final point of convergence), the resulting move tends to be weaker. This happens because, by that time, the buying or selling pressure may have already dissipated, which weakens the breakout. And this is exactly where NVDA is right now, which could make the breakout less powerful.
What do you think? Do you believe NVDA’s breakout will be strong enough to reach the $171.95 target, or could the proximity to the triangle’s apex weaken the move? Let’s discuss your thoughts in the comments!
