NVIDIA: Time for a breather 😮‍💨

Let's take a closer look at Nvidia NVDA – a stock generating a lot of buzz.

On the two-day chart, we observe a potential completion of Waves (3) and (4) between November 2021 and October 2022. As an alternative, we could see Waves (1) and (2), leading to the upcoming Wave (3). The targets are ambitious, and time will reveal the accuracy of these projections.

Following Wave (4) or alt. (2), we've formed a 1, 2, 3, and 4 pattern. Now, Wave 5 is on the horizon, and our price target is positioned at the 161.8 % fibonacci extension.

Zooming in, since our sub-wave 4 in red, we've constructed a Wave ((i)) and ((ii)) at $450. We're now in the process of building Wave ((iii)). A brief corrective move may follow before reaching the circled Wave ((iii)) at 161.8, around $662.

After we reach our targets, we'll be on the lookout for an entry point for the next big Wave 5 movement.

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Here is the daily chart for you too.

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There we go. Right after we have reached our golden pocket area around $625, we could see a nice rejection. We took our profits and are ready for the trend reversal. We will keep you updated

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The chart for NVIDIA is indeed displaying considerable strength, despite the price being at a highly overbought or greedy level. This is why we always maintain a small moon bag open, enabling us to capture unexpected movements. With the breakthrough of the 227.20% level, which acted as a support level today, we may anticipate a favorable movement towards the 261.80% level, serving as the next resistance zone.

Should we witness another higher high, the movement could potentially extend up to the 361.80% Fibonacci level. However, it's important to acknowledge that such a scenario would constitute a remarkably aggressive run, particularly considering NVIDIA's current price-earnings ratio of 96. For context, Apple boasts a P/E ratio of 29, Amazon stands at 59, and even Microsoft is at 38.

It's certainly an impressive performance, but whether it's healthy in the long run is a matter of debate 🤔.

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NVIDIA (NVDA): NVDA

We believe the time has come to consider our alternative scenario for NVIDIA, given the strength and magnitude of the recent surge. This leads us away from the previous assumption that we were witnessing a wave (5), as posited a month ago. Our current inclination is that we are dealing with a wave (3) and an impending wave (4). Presently, NVIDIA's all-time high stands at $824, with the subordinate wave ((iv)) at $662.50. We will issue a limit order at the first sign of weakness. Nevertheless, it remains to be seen whether NVIDIA will set a new all-time high or experience a minor pullback relative to wave (4) before forging ahead to complete and conclude wave (5). Subsequent to this, a significant correction is anticipated as part of the overarching wave II. However, we still have ample time to properly strategize and contemplate NVIDIA's trajectory in the coming weeks.