This is a really great longer term short opportunity. From a technical perspective Nvidia needs a big correction. Fundamentally, some of Nvidia's rapid growth can be attributed to the cryptocurrency boom. Among other things, Nvidia manufactures GPUs used for cryptocurrency mining. As you can imagine, demand is weakening.
From a technical perspective, Nvidia is testing a major trendline and all of the indicators show that it will slice through it in the near future (on the lower time frames you can see it barely broke it today). I expect the stock will open higher in the morning and attempt a rally; however, this is a sell the rip market and the bears will maul it.
I am short and will probably stay short on this for 1-2 months and will keep this updated. As always, please perform your own due diligence before acting upon any ideas.
From a technical perspective, Nvidia is testing a major trendline and all of the indicators show that it will slice through it in the near future (on the lower time frames you can see it barely broke it today). I expect the stock will open higher in the morning and attempt a rally; however, this is a sell the rip market and the bears will maul it.
I am short and will probably stay short on this for 1-2 months and will keep this updated. As always, please perform your own due diligence before acting upon any ideas.
Trade closed: target reached:
Target reached...take some profits and see what happens.
Comment:
I have closed this trade but may be looking to open a new trade if we see a retest of this resistance. If you are interested in me charting a new trade on this one just let me know.
