NVDA is in a huge rising wedge and is extremely overbought. The worst thing of all is NVDA is bearish fundamental stock with no bright future. NVDA did only rise more than 150% because of lies about AI. AI here AI there, and now when the last mom-and-pop retail traders bought at the top we are ready for the major collapse of price.
Furthermore, it formed a shooting star reversal pattern or some kind of Gravestone Doji reversal pattern on the top, which is really very bearish, especially due to the fact it had so much volume.
NVDA RSI and MACD is way way overbought and both have strong negative divergences which indicate the fake pump is over and NVDA is hardly staying at these levels.
In the end with Powell's testimony and Yellen's testimony yesterday, I really don't understand how anyone can be positive and bullish. If the FED boss and Tresurry boss can't answer simple questions about banks and security, I don't know how regular US citizens can be positive on banks or systems.
Therefore it is a pure sell signal with the first target at BigRed and the second likely below 100!
I started shorting NVDA about a week ago; when it was at 240-250 ; cost me a lot when it shoot up to 275 ; the more I cost averaging ; chasing only hurt more. I should have cut loss much sooner; than get blew by avalanche. Still hanging on to some long put with most of value gone. Sure hope your idea come true and win back some of the loss.
ML01
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"NVDA is in a huge rising wedge and is extremely overbought. The worst thing of all is NVDA is bearish fundamental stock with no bright future. NVDA did only rise more than 150% because of lies about AI. AI here AI there, and now when the last mom-and-pop retail traders bought at the top we are ready for the major collapse of price."
10,000 Nvidia processors are running the ChatGPT service and demand is high. How can anybody can say: "...NVDA is bearish fundamental stock with no bright future" ? AMD is only one real competitor to NVDA.
Consistent_Trades
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@ML01, oh my God, do you know what is bullish or bearish fundamental stock? Do you know how to make fundamental analyses? Do you know what is PEG ratio, Institucional transaction, Insider transaction, Earnings per share Q over Q, Sales growth Q over Q and etc? (just few of them PEG 7.37; EPS this year -54.70%; Sales Q/Q -20.80%; EPS Q/Q-51.60%; )
Did you read NVDA financial report at all? Year over-year revenue is down 21%, while expenses are up 26% - so net income is down more than 50%; Inventory is up 99% year over year - so NVDA has a HUGE issue with oversupply! On another side, current liability is up more than 50% while total liability is up 8% Net cash is down 25% year over the year
and much more but I don't have time. Ill repeat this is TA analyze first, and fundamental second.
Slanina7
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I can only hope. I’m in on SOXS at $31. This has been nothing but a disaster..
Consistent_Trades
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@Slanina7, trading from hope will kill your account. One of my rules. Do not ever trade without stop loss, please. These are odds and probabilities games. Only 60% need to be positive and you are in big money, only 60%. In some cases, even 50% is enough if you have a big actual reward-to-risk ratio.
But not to bother you with my bullshit, I can say 90% chance is NVDA will drop like stone.
ML01
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@Slanina7, Never short Semiconductors! This is a new gold!
Consistent_Trades
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@ML01, very interesting! So you are 100% sure we are not or not heading into recession, especially after Powel's talk 2 days ago? I mean because if you think we are going into recession think twice about what we DO NOT NEED in a recession! We don't need chips, my friend!
And besides my chart being pure TA analysis which is for traders (those who buy and sell or short and buy to cover, not bag holders, I am afraid we are heading into a deep recession where semiconductors will fail fast and hard.
ML01
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@Consistent_Trades, I believe, as long as Jerome Pawel is a head of FED, we are not heading into recession. Second, geopolitical events today, Ukraine - Russia war, China, Iran, will lead to high demand in missiles, while each missile have at least one chip. Electric vehicles are spreading and they need chips. USA moves all chip production from China to its own domestic area. Even if recession will come, banks, REIT, biotech will suffer, but not essentials products, which are the chips today.