NVDA Crash Coming? Big Sell Opportunity? 600 incoming??
Ive been looking into two stocks recently, NVDA and SPY, and they both look extremely overbought. I mention SPY only because NVDA is apart of the S & P 500, Ill upload my SPY short analysis soon.
However if you look into the weekly chart on the left it has broken out of an of what appears to be an already overbought channel. This channel dates back to 2018, where the MFI indicated overbought before a major dip under the 200 MA. Looking at where its at now, its above the channel where it was deemed to be oversold in 2018.
Looking at the daily chart on the right NVDA has been riding up the Bollinger Bands for the past month at an almost unsustainable rate causing the bands to have a range from $610 to $770. This is dangerous for the stock so all traders should trade with caution.
the MFI has just flipped downward which shows the money flow is starting to decrease, as well as the stoch RSI. The stock is also getting far from its 50 MA which is at $635 at the time of writing. Lastly looking at the fib retracement have broken past the 1.618 level. From 540 in May it has went straight up breaking threw 7 levels only retesting the .786 level at $625. Not to mention its up over 100% over the past year and even more since the corona crash.
I predict the 1.618 level wont hold for long and we should see a $650 NVDA in the near future, that is where we topped on April 15th, the 1 level on the fib retreacement, and around where the 50 MA should be soon. If it doesnt hold strong on that level we should be retesting the .786 level where it showed strong support flipped resistance before breaking through. If it doesnt hold around the 625 area then it appears the strongest level of support is the .5 level around 593. This could take a few weeks to develop. Trade with caution!
However if you look into the weekly chart on the left it has broken out of an of what appears to be an already overbought channel. This channel dates back to 2018, where the MFI indicated overbought before a major dip under the 200 MA. Looking at where its at now, its above the channel where it was deemed to be oversold in 2018.
Looking at the daily chart on the right NVDA has been riding up the Bollinger Bands for the past month at an almost unsustainable rate causing the bands to have a range from $610 to $770. This is dangerous for the stock so all traders should trade with caution.
the MFI has just flipped downward which shows the money flow is starting to decrease, as well as the stoch RSI. The stock is also getting far from its 50 MA which is at $635 at the time of writing. Lastly looking at the fib retracement have broken past the 1.618 level. From 540 in May it has went straight up breaking threw 7 levels only retesting the .786 level at $625. Not to mention its up over 100% over the past year and even more since the corona crash.
I predict the 1.618 level wont hold for long and we should see a $650 NVDA in the near future, that is where we topped on April 15th, the 1 level on the fib retreacement, and around where the 50 MA should be soon. If it doesnt hold strong on that level we should be retesting the .786 level where it showed strong support flipped resistance before breaking through. If it doesnt hold around the 625 area then it appears the strongest level of support is the .5 level around 593. This could take a few weeks to develop. Trade with caution!
Comment:
NVDA is down about 100 in the past week and is approaching the top channel on the left chart, and about to test the 1.618 on the fib probably looking for a temporary bounce soon off those levels, but its less likely to hold solid support. Should break down past those levels sooner than later. i expect solid support at the 1.0 level ($648.57)