Watching Nvidia over the past year has been nothing more than stunning, especially for those than missed the ride. However, there's quite a lot going on here still, especially fundamentally but looking at the Chart it may be running low on steam... or has it? The currant long term pattern is showing a bullish Wedge formation with a potential breakout within the next couple of months that could take NVDA to all time highs in 2024 however the MFI is losing strength so also showing a shorter term double top there could be a significant pull back for an extremely good buying opportunity. Keep in mind that Rising Wedges though favorable don't always break out in the direction of the dominant trend which for the past year has been UP, so lets now look at the 3rd visible pattern and that is a Bullish Pennant. Again Pennants don't always breakout as you'd expect so Don't Even Blink with this one because the Price could go either way. Set tight Stop Losses to lock in profits and Get Ready for your next entry and exit points. Ultimately NVDA should be held Long Term in any Good portfolio as it's dominant market share and being the Market Leader is not going to change anytime soon and the $600.00 price mark is just a matter of time, and not a long ways off, even if there is a pull back.
Comment:
Looking at NVDA the last couple of Candles are showing that the Bulls were running out of steam to push it higher and after each of 3 tests of the $500 Ceiling the stock pulled back 10-15% so at this poiunt I also expect another pull back at least to $500 to test $500 as Support. I am keeping a close eye on the ADX as well because it is showing some strength in the current trend and if it breaks above 25 then it might just motor on ahead to $600.
Comment:
Here's a series of Charts, the first of which is showing the Current Long Term Price Movement that began in June of 2019 with the Price around $38.00. Using Andrews Pitchfork you can see how the stock is trending right through the middle of the potential movement and though it may have paused at the moment for this week's Big Tech and Fed. reports, unless the pattern is broken through at the bottom the Pitchfork Pattern remains intact and the likelihood of it moving higher at this point is very strong even if there is a small short term pullback.
Further to the above chart these four key indicators are all showing very good strength lending credence to the strong upward trend continuing.
Further to the above chart these four key indicators are all showing very good strength lending credence to the strong upward trend continuing.