NVDA, after experiencing a significant increase and potential false hype (the company's CEO has already stated that it will be challenging to reach $11 billion in the second quarter), appears to be forming a Head and Shoulders (H&S) bearish reversal pattern.
The decrease in volume can be considered a positive sign for bulls as it indicates consolidation.
However, both the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) are declining and appear weak.
If NVDA crosses the dotted line, it will breach the neckline of the H&S pattern, potentially triggering a strong short position.
On the other hand, if volume starts to increase, we may witness a new significant surge towards the $500 mark or even higher.
I am giving more chance for breaking of neckline!
The decrease in volume can be considered a positive sign for bulls as it indicates consolidation.
However, both the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) are declining and appear weak.
If NVDA crosses the dotted line, it will breach the neckline of the H&S pattern, potentially triggering a strong short position.
On the other hand, if volume starts to increase, we may witness a new significant surge towards the $500 mark or even higher.
I am giving more chance for breaking of neckline!
Consistency is the key of success....