Overview: in the update of last week, I mentioned the possibility that NVDA has peaked in wave (I). I also mentioned that as we were very early in the development of wave (II), its structure and price targets are not clear. Further, I provided the ascending trendline on the hourly chart as the confirmation signal.
Update: NVDA made a higher high as it had more room in wave (I) to the upside. We finally broke the ascending trendline on the hourly chart. So far, we have ALMOST completed an abc structure, possibly wave w of (II), what follows is a wave x to the upside which provides a good spot to short NVDA.
Note: It is completely valid and possible that the wave (I) we have on the daily chart was actually a wave x (as a zigzag correction) and we form another zigzag, wave z to new lows on NVDA. I think the strength and extent of the upcoming wave y of (II) (or wave 3 of a of z?) can help a lot in making this decision. Either way, we are going to have a nice spot to enter bearish on NVDA soon (peak of wave x of (II) or wave 2 of a of z).
Update: NVDA made a higher high as it had more room in wave (I) to the upside. We finally broke the ascending trendline on the hourly chart. So far, we have ALMOST completed an abc structure, possibly wave w of (II), what follows is a wave x to the upside which provides a good spot to short NVDA.
Note: It is completely valid and possible that the wave (I) we have on the daily chart was actually a wave x (as a zigzag correction) and we form another zigzag, wave z to new lows on NVDA. I think the strength and extent of the upcoming wave y of (II) (or wave 3 of a of z?) can help a lot in making this decision. Either way, we are going to have a nice spot to enter bearish on NVDA soon (peak of wave x of (II) or wave 2 of a of z).
