NVDA Price Action Analysis: Riding the Bullish Wave Towards $337

bitdoctor Updated   
In this article, I will dive into the price action analysis of NVIDIA (NVDA) and explore its recent movements, highlighting key milestones, and providing insights into potential future developments. NVDA has been a subject of considerable interest among traders and investors due to its impressive performance and the formation of significant patterns. I will discuss the journey from the breakdown below $200, the subsequent consolidation, and the current bullish breakout. Additionally, I will examine the Elliott Wave perspective, suggesting the possibility of a larger Wave 3 and the potential for a consolidation phase before a potential new high.

The Inverted Head and Shoulders Pattern
Back in April 2022, NVDA experienced a breakdown below the $200 level, initiating the formation of an inverted head and shoulders pattern. This pattern is considered a bullish reversal formation, indicating a potential trend reversal. Traders keenly observed the subsequent consolidation phase, lasting until January 2023, when a breakout above the $180 level occurred.

Overcoming Contrary Opinions
During my analysis, I encountered contrasting views from commenters who disagreed with the projected technical analysis. However, with two target levels set at $270 and $337, it is important to note that NVDA has already surpassed the initial target of $270. The current price sits around $297, indicating a continued upward trend and the potential to reach the bullish breakout target of $337.

Consolidation at $270
After surpassing the $270 target, NVDA experienced a consolidation phase lasting approximately one month. This period was characterized by a battle between bullish and bearish forces, as they contested for control of the price direction. Such consolidations are common and often provide traders with valuable insights into future price movements.

Elliott Wave Perspective
From an Elliott Wave perspective, the ongoing price action in NVDA suggests that the stock is in a larger Wave 3. Elliott Wave theory posits that markets move in repeating patterns, and Wave 3 is typically the most powerful and extended wave in an uptrend. In this view, the target for Wave 3 aligns with the projected price of $337. Traders should anticipate a potential larger consolidation phase upon reaching this target, which could serve as a launching pad for a potential move to a new high.

NVDA's price action has been captivating, capturing the attention of day traders and investors alike. The inverted head and shoulders pattern, the subsequent breakout, and the ongoing bullish momentum indicate promising prospects for the stock. While facing initial skepticism, the stock has already surpassed the first target of $270 and shows no signs of slowing down as it approaches the bullish breakout target of $337. Traders following the Elliott Wave perspective should be prepared for a potential consolidation phase upon reaching $337, which could set the stage for further gains. As always, it is essential to monitor the price action closely, considering both technical and fundamental factors, to make informed trading decisions.
Trade active:
Today was an absolutely MONSTOROUS day for NVDA. This is why I love the markets. I hope you were able to take advantage of the crazy momentum today.
Trade active:
NVDA sure does enjoy these formations. This is already playing out.

NVDA is still chugging away - We're getting a good run up into earnings which is on Wednesday. Be on the lookout for a reversal around earnings. There could be a false breakout after earnings which I would actually be interested in shorting if that happens. Ultimately, you have to look at the move that we've gotten. Being in cash at this time or before earnings is an ok position to be in. Chances are, we'll see lower prices compared to what we're seeing today.

Here's what I think the NVDA is going to do. Also to note: FOMC minutes are on Wednesday as well, so we could be seeing some interesting price action on/after Wednesday either way.

Trade closed: target reached:
Target reached. NVDA currently at $350 in after hours - Trade closed.

CE - BitDoctor
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