As you can see at the daily chart of NVDA, there are 2 light green lines (I will mention them as "green") and two light orange lines (these will be just "orange"). Some explanation on these lines: They represent specific zones, important zones. So we have the Green zone and the Orange zone. Above the Green one a stock, bond, ETf etc is at extremely bullish area. Between the Green and the Orange zone, a security remains in Bullish area but additional analysis is needed both Technical and Fundamental. The most important part for an investor is to certainly have a price above the Orange zone because the Orange zone is the Long Term zone. Below it there is possible trouble ahead...
NVDA is testing the Orange zone and below I am explaining why I find the chart as alarming.
So NVDA since the start of October went down in a sharp and fast way. It crossed easily the Green zone and is now testing the Orange zone.
The price behavior of NVDA is alarming.
Not only because the recent move down was abrupt but also because from April to October we have seen 5 waves up (i to v) as mentioned at the chart.
Short term momentum is extremely oversold therefore we could see some reaction but the overall structure of the recent down move, tells us that it is possible to see a strong correction for NVDA.
I will post further analysis at my site winstox.webnode.com/ but in general I do not like what I see.
Therefore during the reaction preserving profits from NVDA long positions seems a good thing to do.
During this move hedging a position with out of the money put options is also another strategy for long term investors.
Traders should use the reaction for possible short positions.
NVDA is testing the Orange zone and below I am explaining why I find the chart as alarming.
So NVDA since the start of October went down in a sharp and fast way. It crossed easily the Green zone and is now testing the Orange zone.
The price behavior of NVDA is alarming.
Not only because the recent move down was abrupt but also because from April to October we have seen 5 waves up (i to v) as mentioned at the chart.
Short term momentum is extremely oversold therefore we could see some reaction but the overall structure of the recent down move, tells us that it is possible to see a strong correction for NVDA.
I will post further analysis at my site winstox.webnode.com/ but in general I do not like what I see.
Therefore during the reaction preserving profits from NVDA long positions seems a good thing to do.
During this move hedging a position with out of the money put options is also another strategy for long term investors.
Traders should use the reaction for possible short positions.
Comment:
Lower, lower and lower.
This is my in depth analysis...
This is my in depth analysis...
Comment:
In a more serious approach:
NVDA remains weak and vulnerable.
At some time it will react but this will only be a bounce and nothing more.
I will use it to short it again.
My Target Price for NVDA (based on my current analysis) is $120-100
NVDA remains weak and vulnerable.
At some time it will react but this will only be a bounce and nothing more.
I will use it to short it again.
My Target Price for NVDA (based on my current analysis) is $120-100
Let's see how NVDA reacts. It will give lots of info.
Price Behavior is important, it reflects the herd's psychology...