NVDA is likely heading lower before heading higher.
Daily chart
1. NVDA has been failing at the Ichimoku conversion line for many days after cutting through the daily cloud. The cloud has been turning red, which implies near term bearish trend. I acknowledge that support has been holding above Monday, Jan. 24 lows. But looking at Elliott wave structure, it looks like NVDA is trying to carve out a 5th wave down.
2. Stochastics reveal a bearish daily trend, and the %D line is curling back downwards while under 30 after having bounced. %K just crossed %D bearishly. A likely near-term sell signal. (Looks like a dead cat bounce perhaps.)
78-minute chart
1. NVDA cannot break past the 78-minute chart's bearish trending Ichimoku cloud as resistance.
2. While very much oversold on the hourly, note how NVDA has trended within the OS area, staying mostly under 40 with the exception of NVDA's bounce on Jan. 25-26.
My targets are approx. 187-205. It's possible I could be wrong, this is for educational purposes only.
I'm bullish on NVDA in the intermediate term and long term. It makes sense to position for a bullish position in the coming days. I think NVDA could very well bounce into mid-February 2022, so I am positioning for that as well.
Daily chart
1. NVDA has been failing at the Ichimoku conversion line for many days after cutting through the daily cloud. The cloud has been turning red, which implies near term bearish trend. I acknowledge that support has been holding above Monday, Jan. 24 lows. But looking at Elliott wave structure, it looks like NVDA is trying to carve out a 5th wave down.
2. Stochastics reveal a bearish daily trend, and the %D line is curling back downwards while under 30 after having bounced. %K just crossed %D bearishly. A likely near-term sell signal. (Looks like a dead cat bounce perhaps.)
78-minute chart
1. NVDA cannot break past the 78-minute chart's bearish trending Ichimoku cloud as resistance.
2. While very much oversold on the hourly, note how NVDA has trended within the OS area, staying mostly under 40 with the exception of NVDA's bounce on Jan. 25-26.
My targets are approx. 187-205. It's possible I could be wrong, this is for educational purposes only.
I'm bullish on NVDA in the intermediate term and long term. It makes sense to position for a bullish position in the coming days. I think NVDA could very well bounce into mid-February 2022, so I am positioning for that as well.
Comment:
NVDA went only modestly lower before turning higher with the rest of the market and the Nasdaq into mid-February. But it has been falling back. It will be interesting if it bucks the trend and holds support at prior late January 2022 lows. Unlike semiconductors, cybersecurity does not look as good right now! Check out my recent post on cybersecurity as a group:
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